Los Angeles Affordable Development Lands $72M
The financing will bring online 200 units in central L.A.
A partnership between an ABS Properties affiliate and a Kingdom Development affiliate has acquired $72 million in tax-exempt and taxable mortgage revenue bonds for the acquisition of land and development of a 200-unit affordable senior housing community in Los Angeles, from America First Multifamily Investors LP (ATAX), a Greysone affiliate. Columbia Pacific Advisors is also a limited partner and tax credit investor. ATAX’s Frank Bravo, managing director, originated the transaction.
All units at Residency at the Entrepreneur will be set aside for seniors earning between 30 and 80 percent of the area median income. A total of 99 units will be master leased by The People Concern and set aside for seniors, as well as individuals at risk of homelessness and low-income families.
Once the tax-exempt bonds for the development will be redeemed, at stabilization, no later than 36 months from the initial closing, ATAX is slated to provide up to $45 million in permanent financing in the form of a 15-year term, 40-year amortized loan.
Much-needed affordable option in central L.A.
Located at 1657 N. Western Ave., the property will be within close proximity of the Hollywood/Western metro station, and some 6 miles northwest of downtown Los Angeles. Several retail, dining and entertainment options will also be available within a 1-mile radius.
The community’s amenities are planned to include a business center, clubhouse, fitness center and laundry facility. A computer room, as well as offices, will also be available at the location.
The affordable housing sector’s woes got an unwanted boost from pandemic-induced market dynamics, putting additional pressure on lower-income residents and bringing an overall deterioration of housing affordablility across the U.S. What’s more, a recent reports shows, the country needs some 4.3 million new apartments by 2035 to meet demand. The same report found that 4.7 million units dropped from the affordable bracket between 2015 and 2020.