Dominium Lines Up $175M for Phoenix-Area Affordable Properties

Dominium has secured $175.1 million in financing for the construction of 67 Flats and Juniper Square, two affordable housing developments in Glendale, Ariz., totaling 605 units. The projects received $56.3 million and $29.8 million respectively in Freddie Mac 4 percent LIHTC Tax-Exempt Loan. Additionally, the developments benefit from $89 million in equity bridge loans from Merchants Bank, as well as $179 million in construction loans that Barclays Capital Inc. provided. Merchants Capital arranged the financing for the developer.

Dominium acquired the land for the properties in December for $11 million, as reported by AZ Central. Both properties will be fully affordable, with apartments reserved for households earning at or below 60 percent of the area median income, maintaining their affordability through 2053.

Juniper Square will comprise two four-story buildings encompassing 221 units reserved for seniors of 55 and over. Additional funding for the project includes $72 million in bonds from the Arizona Industrial Development Authority with U.S. Bank as trustee, as well as $3 million in construction loans from the Arizona Department of Housing and Maricopa County Human Services Department.

The other property, 67 Flats will consist of 14 three story-buildings across an 18-acre site. It is supported by $91 million in bonds from the Arizona Industrial Development Authority with U.S. Bank as trustee, along with some $4.6 million in construction loans from the City of Glendale and the Arizona Department of Housing.

Residences at both communities will feature patios or balconies, central air conditioning, ceiling fans and walk-in closets. The properties will include similar amenities in their respective common areas such as swimming pools, fitness centers, clubhouses and central laundry facilities. Located adjacent to each other, along North 67th Avenue, the development sites are roughly 11 miles from Phoenix and some 2 miles from central Glendale.

Phoenix affordable development

Currently the Phoenix development pipeline features 172 properties accounting for 44,582 total units, according to Yardi Matrix data information. Of all residences under construction, 3,218 units, representing 7.2 percent of the pipeline are within fully affordable projects, along with some other 539 apartments in partially affordable properties.

Dominium has been very active developing affordable properties in the Phoenix metro area. Recently, the company announced two other adjacent properties in Goodyear, Ariz., which will total 657 units marking the largest affordable development ever within the firm’s portfolio, as well as in the state’s history.