Greystone affiliate, America First Multifamily Investors, L.P. (NASDAQ: ATAX) (“ATAX”), today announced that it has purchased $72 million in tax-exempt and taxable mortgage revenue bonds for the acquisition of land and construction of a 200-unit seniors affordable housing property in Los Angeles. Frank Bravo, Managing Director at ATAX, originated the transaction.
Located at 1657 N. Western Avenue, Residency at the Entrepreneur will include a business center, clubhouse, fitness center, laundry facility, and gated/controlled access on the approximate half acre site. Amenities will also include a computer room, and offices for residents’ use. The units will be restricted to senior residents earning a range of 30% to 80% Area Median Income (AMI). Ninety-nine of the units will be master leased by The People Concern, whose constituents are seniors, individuals at risk of homelessness, and low-income families.
At stabilization, and no later than 36 months from initial closing, the tax-exempt bonds for the project will be partially redeemed, and ATAX will provide up to $45 million in permanent financing in the form a 15-year term, 40-year amortized facility.
As a completed asset, the multifamily community will be owned by Residency at the Entrepreneur, LP, a California limited partnership. The borrower’s administrative general partner is ABS Entrepreneur, LLC, a wholly owned affiliate of ABS Properties, Inc., and the borrower’s managing general partner is Kingdom Entrepreneur, LLC, a wholly owned affiliate of Kingdom Development, Inc., a California nonprofit corporation. The limited partner, and tax credit investor, is Columbia Pacific Advisors.
“We are honored to have the tools and resources at our disposal, and the strength in partnerships, to create this desperately-needed housing in Los Angeles,” said Bravo.
Ken Rogozinski, CEO of ATAX added, “This project would not be possible without critical tax-exempt bond financing, which enables affordable housing developers to make their efforts possible and create housing to address today’s affordable crisis. We thank our collaborators in this public-private partnership on this project for their commitment to success for the residents of Los Angeles.”
Greystone, the #1 provider of HUD-insured commercial loans by volume, is also a top provider of Fannie Mae and Freddie Mac affordable housing loans. In 2019, a Greystone affiliate acquired the parent of the general partner of America First Multifamily Investors, L.P., which manages over $1 billion in assets consisting primarily of mortgage revenue bonds intended for multifamily affordable housing construction and permanent financing.