Phoenix Affordable Project Lands $29M Freddie Mac Loan
- Jul 30, 2021
A partnership between Trinity Housing Development and nonprofit Housing for Hope Arizona Inc. has secured a $28.8 million Freddie Mac Unfunded Forward loan to finance the construction of Mesquite Terrace Apartments, a 297-unit affordable housing development in Phoenix.
Lument provided the tax-exempt Freddie Mac loan, which features a 30-month unfunded forward commitment, 17-year term, 40-year amortization schedule and a low, fixed interest rate.
The mid-rise property will take shape at 5039 N. 19th Ave. on a 3.1-acre site. Mesquite Terrace Apartments will feature 129 one-bedroom, 78 two-bedroom and 90 three-bedroom apartments across three buildings.
The community will be rent-restricted, with 285 units reserved for residents earning 60 percent of the area median income or below, while 11 units will be set aside for those earning 50 percent of the AMI or below.
Mesquite Terrace Apartments is scheduled for completion in March of 2023.
The community will place residents less than a mile from the West Camelback Road retail corridor and less than 2 miles from a 252,000-square-foot regional mall. Downtown Phoenix is 6 miles southeast of the property.
Zions Bancorp. has provided a $48 million loan for the project’s development. The loan is set to mature in 2024, according to Maricopa County records.
The developers also secured a $1 million HOME Program Development loan funded by the City of Phoenix and another $1 million loan with a 4 percent interest rate provided by the Phoenix Community Development and Investment Corp.
According to a recent Yardi Matrix report, Phoenix is among the nation’s top 10 markets for multifamily development. The metro had 31,371 units under construction as of May, as it continues to benefit from positive demographic trends in the context of a business-friendly environment.
Within 3 miles of Mesquite Terrace Apartments, there are a total of 1,780 units under construction across one fully affordable and seven market-rate multifamily projects, according to the most recent Yardi Matrix data.