Greystone’s America First Multifamily Investors Provides $154M Loan for Affordable Housing
A partnership between UrbanCore Development, E. Smith & Company, Oakland Economic Development Corporation and Red Stone Equity Partners has secured $153.6 million in tax-exempt and taxable construction loans for a new 387-unit affordable housing community in Elk Grove, Calif., Commercial Observer can first report.
Greystone affiliate America First Multifamily Investors (ATAX) provided the loan with a team led by Frank Bravo.
The affordable apartment development Poppy Grove, located at the southeast corner of Bruceville and Poppy Ridge roads in Sacramento County, is on a 16.73-acre site that will have 14 residential buildings, a clubhouse, a business center, an outdoor pool, a recreation area and an outdoor playground when construction is finished, according to a Greystone release.
Apartments in the project will be set aside to house people earning between 30 and 80 percent of the area median income.
“We are honored to leverage our expertise in affordable housing and work with partners who share our vision for addressing the affordable housing crisis in Sacramento,” Bravo said in prepared remarks.
The tax-exempt loan is set to be partially paid down at stabilization, which should be before 36 months after closing, the release said. After that, Greystone plans to issue up to $42.8 million in permanent Freddie Mac (FMCC) tax-exempt loans that will have a 15-year term and 40-year amortized facility, according to the release.
“This project would not be possible without critical tax-exempt financing, which enables developers to create housing that addresses the demand for affordable housing in the Sacramento area and throughout the nation,” Ken Rogozinski, CEO of ATAX, in prepared remarks.
As a completed asset, the multifamily community will be owned by Poppy Grove I, Poppy Grove II and Poppy Grove III, each a California limited partnership.
“The Poppy Grove ownership is elated with the construction financing provided by ATAX,” Reese A. Jarrett, a co-managing member, said. “Our great relationship with Frank Bravo and the ATAX team was integral to completing the financing on this affordable housing development, which will enrich the lives of 387 families that will call Poppy Grove home.”
Update: This story originally misattributed source material. This has been corrected. We apologize for the error.
Emily Fu can be reached at efu@commercialobserver.com.
