Greystone has provided a $30,821,000 Freddie Mac Forward Tax-Exempt Loan (TEL) to help finance the addition of 172 units to an existing affordable housing property in Bloomington, MN. The loan was originated by Kyle Jemtrud, managing director at Greystone, on behalf of Aeon.
The Freddie Mac affordable loan carries a two-year forward period plus an 18-year term at a fixed rate with a 40-year amortization. The financing, in combination with other capital sources, will be used to construct 172 new apartments on land adjacent to the existing Village Club apartment complex located at 1930 E. 86th St. The two new four-story buildings will include three- and four-bedroom homes to serve larger families. With construction due to begin in August 2020, the community will be known as SoLo Apartments.
Today, the 306 existing units at the adjacent Village Club serve mixed-income residents, with more than half of the units at or below 60 percent of the area median income and the remaining units at or below 80 percent of the area median income. Two-thirds of the new units to be constructed at SoLo will be affordable at or below 60 percent of the area median income, and one third will be affordable at or below 80 percent of the area median income. The existing and to-be-constructed buildings are on an almost 18-acre site that features an indoor and outdoor pool, a racquetball court, a movie room and updated community space.
“Greystone’s knowledge and expertise in affordable housing, as well as their strong relationship with Freddie Mac, were all integral to this financing package being a success,” said Alan Arthur, President and CEO of Aeon.
“This Freddie Mac program is a fantastic option for affordable housing developers. It allows them to secure long-term exit financing on tax credit construction projects before they ever break ground,” said Mr. Jemtrud. “We truly enjoy working with Aeon and helping them finance their portfolio to serve the residents of Minnesota.”