Mortgage banking company Merchants Capital recently secured more than $55 million in financing for the development of Maison’s Palmdale, an affordable housing property currently under construction near 65th Street East and East Avenue S. The property is the first in the state to be developed under recently passed legislation which allows for greater lot size density.
To finance the property, Merchants Capital secured a $31.6 million Merchants Bank of Indiana construction loan and $24 million in permanent financing through a 4% Low-Income Housing Tax Credit Fannie Mae Forward Commitment and Fannie Mae Permanent Loan. The financing deal included both a taxable and tax-exempt component.
Maison’s Palmdale will be comprised of 118 detached housing units featuring three-bedroom and two-bedroom units. The three-bedroom units include a two-car garage, while the two-bedroom units have access to designated off-street parking spaces.
“Serving as the financier for this project shows Merchants’ commitment to advancing affordable housing across the nation,” said Marsha Goff, Executive Vice President at Merchants Capital’s Saint Paul office. “By capitalizing on the new zoning laws, we were able to maximize the development, bringing even more affordable housing options to such a desirable living area.”
Thirty-six of the units will be restricted to residents earning no greater than 50% of the area median income (AMI), and 81 units will be restricted to residents earning no greater than 60% AMI. One unit is reserved as the manager’s unit. Additionally, all 118 units on the property are under a Land Use Restrictive Agreement (LURA) with no release provisions.
“Ravello is very excited to work with industry best in class partners Merchants Capital and WNC to provide affordable, single family dwellings to the local community,” said Phil Ram, CEO of Ravello Holdings, the developer of the project. “The California Dream was built on the ability of working families to live and thrive in comfortable homes. We are thankful our legislators and the city of Palmdale have enabled us to be the first to provide detached affordable homes to Californians in a generation.
“We are very excited to be moving forward with the project and strongly believe in our mission to provide residents in the city of Palmdale with high quality affordable housing,” said Matt Avital, Principal at Ascenda Capital, developer partner for the project. “This development is unique because we will be providing each of our residents with a private backyard, a private entrance, and luxurious shared amenities at an affordable price. We strongly feel that our project will positively impact the Palmdale community and are looking forward to a successful development.”
To learn more about Merchants Capital and its services, visit www.merchantscapital.com.
[Information via news release from Merchants Capital.]