Tax-Exempt and Taxable Bonds Finance Significant Portion of Construction Costs for 200-Unit Building
NEW YORK, July 27, 2022 (GLOBE NEWSWIRE) — 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.
About America First Multifamily Investors, L.P. (ATAX)
America First Multifamily Investors, L.P. was formed on April 2, 1998 under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds which have been issued to provide construction and/or permanent financing for affordable multifamily, student housing and commercial properties. ATAX is pursuing a business strategy of acquiring additional mortgage revenue bonds and other investments on a leveraged basis. ATAX expects and believes the interest earned on these mortgage revenue bonds is excludable from gross income for federal income tax purposes. ATAX seeks to achieve its investment growth strategy by investing in additional mortgage revenue bonds and other investments as permitted by its Amended and Restated Limited Partnership Agreement, dated September 15, 2015, taking advantage of attractive financing structures available in the securities market, and entering into interest rate risk management instruments. America First Multifamily Investors, L.P. press releases are available at www.ataxfund.com.
About Greystone
Greystone is a leading national commercial real estate finance company with an established reputation as a leader in multifamily and healthcare finance, having ranked as a top FHA, Fannie Mae, and Freddie Mac lender in these sectors. Loans are offered through Greystone Servicing Company LLC, Greystone Funding Company LLC and/or other Greystone affiliates. For more information, visit www.greystone.com.
About ABS Properties
ABS Properties (ABS) is a boutique development firm founded for the purpose of acquiring, developing and owning mixed-income/mixed-use projects, specifically in the infill sector in Los Angeles and surrounding areas. ABS’ focuses its development activities on community-oriented affordable housing projects that include revitalization of historic structures and activation of public-private spaces. Since its formation in 2001, the firm has worked closely with the City, State and Federal agencies and has successfully delivered 800+ affordable units in the Los Angeles sub-market in Southern California. Currently ABS is under the direction of Samir Srivastava, who is developing ground-up affordable communities in Burbank, Hollywood, and downtown areas of Los Angeles. The combined projects comprise approximately 1700 mixed-income/affordable-residential units anchored with mixed-uses including grocery stores, pedestrian friendly small-scale service like laundry, coffee shops, fitness centers and public plazas.
About Columbia Pacific Advisors
Columbia Pacific Advisors (CPA) manages strategies in real estate investing, real estate lending and opportunistic investment. Columbia Pacific Advisors Bridge Lending is a platform within CPA that serves commercial real estate clients nationwide. A fully capitalized real estate bridge lender, the platform provides short- to intermediate-term loans ranging from $10 million to $100 million on a range of qualified, income producing properties including multifamily, senior housing, affordable housing, hospitality, and self-storage. For more information, visit www.columbiapacific.com.
Safe Harbor Statement
Information contained in this press release contains “forward-looking statements,” which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, risks involving current maturities of our financing arrangements and our ability to renew or refinance such maturities, fluctuations in short-term interest rates, collateral valuations, mortgage revenue bond investment valuations and overall economic and credit market conditions. For a further list and description of such risks, see the reports and other filings made by ATAX with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2020 and its Quarterly Report on Form 10-Q for the period ended September 30, 2021. ATAX disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
PRESS CONTACT:
Karen Marotta
Greystone
212-896-9149
Karen.Marotta@greyco.com
