Greystone Affiliate Arranges $154M for Affordable Housing

The construction financing will be used for a suburban Sacramento community.

Poppy Grove Development. Rendering courtesy of Greystone

America First Multifamily Investors, L.P., a Greystone affiliate, has provided $153.6 million in tax-exempt and taxable construction loans for a new apartment community in Elk Grove, a Sacramento, Calif. suburb. The 387-unit affordable housing community, Poppy Grove Development, will be situated at the southeast corner of Bruceville and Poppy Ridge roads in Sacramento County.

Poppy Grove Development is a three-phase affordable community. The property will feature 14 residential buildings, as well as an outdoor playground and recreational area and other amenities. The 16.7-acre site will provide gated access and security. Units will be restricted to those who earn between 30 percent and 80 percent of area median income.

Paid down

When the community reaches stabilization, and no later than 36 months after the initial closing, the tax-exempt loan for the project will be partially paid down. At that time, Greystone will furnish up to $42.8 million in permanent Freddie Mac Tax Exempt Loan financing. That will take the form of a 15-year term, 40-year amortized facility.

When it becomes a completed asset, the apartment community will be owned by Poppy Grove I, L.P.; Poppy Grove II, L.P.; and Poppy Grove III, L.P. Each is a California limited partnership. Partnering with the borrower as administrative general partner are affiliates of UrbanCore Development, LLC and E. Smith & Company Inc. The borrower’s managing general partner are affiliates of California nonprofit Oakland Economic Development Corp. The limited partner and the tax credit buyer is Red State Equity Partners.

In a prepared statement, an ATAX official noted that had it not been for the tax-exempt financing, this project addressing the critical need for affordable housing in Sacramento County could not have been undertaken. Last week, Greystone furnished a $43 million refinancing loan for an affordable asset in the Dallas-Fort Worth Metroplex.

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