Adcock Joyner Preservation secured $13 million in debt financing and $7.2 million in equity financing for the renovation and redevelopment of Adcock Joyner Apartments, a 50-unit mixed-use affordable housing property in downtown Oakland, Calif.
Merchants Capital provided the financing, which will fund the development through the 4 percent LIHTC program. The community offers housing to individuals earning no more than 50 or 60 percent of the area median income. Renovations, which began last November, are expected be completed by January 2023.
Originally built in 1915 as a hotel, the five-story property was converted into affordable housing in 1993, according to Yardi Matrix data. The community offers 25 studios and 25 one-bedroom units. The first floor features 2,500 square feet of commercial space, which is occupied by a local nonprofit that helps homeless, poor and disabled individuals.
The owners will renovate each unit, upgrading all kitchen surfaces and appliances, as well as all bathroom surfaces and fixtures. The refurbishment also calls for plumbing, flooring as well as electrical updates. Exterior renovations will include repairs to the fire escape, new roofing, new HVAC units, as well as elevator upgrades and enhanced security systems. The first floor will also be reconfigured and improved.
Once the revamp is complete, the community will operate under a new Housing Assistance Payments contract, which is expected to cover 100 percent of the revenue-generating units and ensure that the property will remain affordable in the following years.
Located at 532 16th St., the property is surrounded by several retail, dining and entertainment options. Interstates 980 and 880 are both within 1 mile west and south of the community. Snow Park is also less than a mile east of the development.
In December of 2021, Merchants Capital closed two tax credit equity funds totaling $233.4 million to assist, create or rejuvenate affordable housing in 12 states. The properties are in Indiana, Minnesota, North Carolina, Ohio, South Carolina, Michigan, Texas, Kentucky, Tennessee, Wisconsin, Missouri and California.