Tax Credit Housing Gets $14M Financing From Magna Bank and Metropolitan Bank
- Jan 31, 2014
Magna Bank and Metropolitan Bank have engaged in $14 million of financing for the Second Phase of Crescent Bluff Apartments affordable housing project in the South Main district of Memphis, announced developer Elmington Capital Group. Both financiers are participating as traditional bank lenders as well as investors, after purchasing tax credits from Tennessee Department of Housing and Urban Development, for the Federal Low Income Tax Credit Program-funded project.
“Both Magna and Metropolitan believe in the project, and we are very invested in watching this neighborhood succeed,” declared Frazer Gieselmann, senior vice president of construction lending at Magna Bank. “Phase I has proven itself to be good for the tenants and good for the South Main District, and we have the same confidence in Phase II,” added Maria Garrett, senior managing director of Metropolitan Bank. The financiers also added they wish to help provide high-quality housing for low-income individuals, helping Memphis communities.
Phase II of Crescent Bluff Apartments is a result of high demand registered at Phase I. The low-income development will reflect demand trends observed at the previous phase – for example one-bedroom apartments will be
featured more prominently. Apartments will range between 500 square feet and 1,000 square feet in size and boast high-end amenities such as stainless steel appliances, granite countertops and balconies. Rents will range between $450 and $665 per month and tenants will have to fall under a capped amount fixed by the Tennessee Housing Development Agency to apply for housing at the rent-restricted community.
Development is already underway at the E.H. Crump Boulevard and Florida Street site and is expected to complete in 14 months. The first tenants will be able to move in by the end of 2014. As previously reported by Commercial Property Executive, Patton & Taylor Enterprises has been signed as general contractor, while Shapiro & Company Architects Inc. is contributing architectural and engineering services.
Rendering courtesy of Elmington Capital Group and Shapiro & Company Architects