Greystone affiliate, America First Multifamily Investors, L.P., today announced that it has provided $153,637,000 in tax-exempt and taxable construction loans for a new 387-unit affordable housing community in Elk Grove, California. Frank Bravo, Managing Director at ATAX, originated the transaction.
Located at the southeast corner of Bruceville and Poppy Ridge Roads, Poppy Grove Development in Sacramento Countyis a three-phrase affordable apartment home community that, upon completion, will include 14 residential buildings, a business center, clubhouse, outdoor pool, laundry facility and an outdoor playground and recreation area, as well as gated access and security on the 16.73-acre site. The units will be restricted to residents earning a range of 30% to 80% Area Median Income (AMI).
At stabilization, and no later than 36 months from initial closing, the tax-exempt loan for the project will be partially paid down and Greystone will provide up to $42.8 million in permanent Freddie Mac Tax Exempt Loan (TEL) financing in the form a 15-year term, 40-year amortized facility.
As a completed asset, the multifamily community will be owned by Poppy Grove I, LP; Poppy Grove II, LP; and Poppy Grove III, LP -- each a California limited partnership. The borrower’s administrative general partners are affiliates of UrbanCore Development, LLC, and E. Smith & Company, Inc., and the borrower’s managing general partner are affiliates of Oakland Economic Development Corporation, a California nonprofit corporation. The limited partner and tax credit buyer is Red Stone Equity Partners.
“We are honored to leverage our expertise in affordable housing and work with partners who share our vision for addressing the affordable housing crisis in Sacramento,” said Bravo.
“The Poppy Grove ownership is elated with the construction financing provided by ATAX,” said Reese A. Jarrett, Co-Managing Member. “Our great relationship with Frank Bravo and the ATAX team was integral to completing the financing on this affordable housing development which will enrich the lives of 387 families that will call Poppy Grove home.”
Ken Rogozinski, CEO of ATAX, added, “This project would not be possible without critical tax-exempt financing, which enables developers to create housing that addresses the demand for affordable housing in the Sacramento area and throughout the nation.”
Greystone, the #1 provider of HUD-insured commercial loans by volume, is also a Top 10 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 billionin assets consisting primarily of mortgage revenue bonds intended for multifamily affordable housing construction and permanent financing.