Blackstone Provides $31M in LIHTC for Phoenix Senior Housing
Casa Azure is the second property that the firm’s April Housing unit and Dominium will partner on.
Blackstone affordable housing portfolio company April Housing and Dominium have expanded their partnership with the development of Casa Azure, a 196-unit affordable senior housing property in Phoenix.
New York-based Blackstone will provide $31 million of tax credit equity to support the development. The deal increases Blackstone and April Housing’s commitment to expand affordable housing in Maricopa County to 568 units through $79 million of Low-Income Housing Tax Credit investments.
Located at 7750 West Encanto Blvd., Casa Azure is expected to be completed in December. In addition to the LIHTC investment, financing for the project includes a $33.3 million construction loan from U.S. Bank that was originated by Deutsche Bank on April 1, 2022, and matures on April 1, 2041, according to Yardi Matrix data. The development also received a $2 million construction loan from the Arizona Department of Housing, Yardi Matrix reported.
In April, Blackstone provided $48 million of tax credit equity to support development of Aviara Flats, a 372-unit affordable housing community in Phoenix being built by Dominium and April Housing at 7800 W. Encanto Blvd. The development will have three phases of delivery with the first 84 units completed in the late third quarter or early fourth quarter of this year. According to Dominium, 132 units will deliver in the first quarter of 2024, with the remaining 156 units slated for completion in summer 2024.
That partnership was the first ground-up development for April Housing, which was formed in February 2022 by Blackstone Real Estate Income Trust to focus on affordable housing across the United States.
The property, located near downtown Phoenix, will be an age-restricted, senior property available to those earning at or below 60 percent of the area median income. Casa Azure will have one-, two- and three-bedroom apartments, ranging in size from 693 to 1,253 square feet, according to Yardi Matrix data.
Community amenities will include a pool and spa, clubhouse, library, fitness center and media room. Unit features will include washer and dryer hookups in each apartment, above standard ceiling heights, digital locks in all units and high-speed internet access. Casa Azure will also have solar panels on the roofs of its carports and ION water systems to help save energy and water.
In addition to Casa Azure and Aviara Flats, Dominium’s other Arizona projects include Copper Cove apartments in Tolleson, Ariz., and Vista Ridge, also in Phoenix. The company started construction on the 308-unit Vista Ridge in May 2021. It is slated for delivery this summer.