CDP Scores $94M in Financing for Portland Project
- Jan 23, 2020
Community Development Partners has obtained $61.4 million in construction financing and low-income housing tax credit equity (LIHTC) to build a 224-unit affordable housing community in the Portland suburb of Gresham, Ore.
KeyBank Real Estate Capital secured the $42.6 million construction loan and $18.8 million of LIHTC equity investment from Key Community Development Corp. The company also scored $32.4 million of fixed-rate Freddie Mac permanent financing for the development.
Slated for completion in 2021, Rockwood 10 will rise on a 7.4-acre lot in the city’s Rockwood neighborhood. The redevelopment of an existing private, fallow piece of land will create a five-building workforce housing community with a publicly accessible park and green spaces at 740 SE 182 Ave.
All units in the Section 42 LIHTC development will be restricted to households earning no more than 60 percent of the area median income. Units will range in size from one to four bedrooms across the three- and four-story residential buildings. Amenities will include a large gathering space with full kitchen, a computer room and study/conference rooms of varying sizes.
Community Development Partners teamed up with Hacienda CDC, a Latino-oriented affordable housing nonprofit in Portland, to develop the project, which is designed by Waechter Architecture. LMC Construction serves as the contractor, while Guardian Real Estate Services will provide property management.
Gresham targets growth
The project will be the largest new housing community in the Rockwood neighborhood, which sits on Gresham’s border with Portland. Rising rents in Rockwood pose a growing challenge to the area’s young, diverse and low-income population. The median household income within a 1-mile radius of the site is $37,734, while the median age is 31, according to data from Yardi Matrix.
A four-story office building with retail storefronts called Rockwood Rising is being developed a short distance away from the site, along SE Stark Street, as Gresham’s urban renewal agency seeks to drive economic growth by bringing businesses, housing and social services to the area.
The new financing for Rockwood 10 was structured by Jonathan Woodland of KeyBank Real Estate Capital’s Commercial Mortgage Group and colleague Brett Sheehan of the Community Development Lending and Investment team.
Community Development Partners joined forces with Architecture Design Collaborative to break ground on Bridging the Aqua, a 57-unit community in Santa Ana, Calif., last July.