The Washington, D.C. office of leading financial services provider Merchants Capital today announced it has secured more than $86.2 million in Freddie Mac 4% Low-Income Housing Tax Credit (LIHTC) Tax-Exempt Loan (TEL) Forwards for the construction of Juniper Square, a senior living community, and 67 Flats, a family housing development, both to be constructed in Glendale, Arizona.
The Freddie Mac permanent financing comprises $29.8 million for Juniper Square and $56.3 million for 67 Flats. The projects are also supported by $89 million in equity bridge loans from Merchants Bank and $179 million in construction loans from Barclays Capital, Inc.
Juniper Square and 67 Flats will maintain affordability through 2053, which will restrict 100% of units at 60% or less of the Area Median Income (AMI).
“We are humbled to be the trusted Freddie Mac Targeted Affordable Housing lender responsible for executing a complex structure with Barclays and US Bank, effectively and efficiently, and recognize the innovative leadership demonstrated by Dominium’s development team,” said Dwayne George, Executive Vice President of Agency Production at Merchants Capital. “We look forward to witnessing Dominium’s transformative vision for affordable senior and family housing unfold in the Glendale community.”
Juniper Square and 67 Flats are being developed by Dominium, Inc., the fourth largest affordable apartment development and management company in the nation.
“Dominium is excited to start construction on 600 units of much-needed affordable housing in the Phoenix community,” said T.J. McElroy, Senior Vice President of Capital Markets at Dominium. “Dwayne George and the Merchants Capital team went above and beyond to move fast and execute on a complicated transaction in a difficult market. The execution from the entire Merchants team was seamless and showed why they are a leader in the affordable housing space.”
Juniper Square will be a 221-unit, 55+ age-restricted property consisting of two four-story residential buildings. Common area amenities include onsite management, elevators, a swimming pool, clubhouse, sports court, central laundry, fitness center, media/theater room, library, hairdresser, pub/game room, recreation and picnic areas.
67 Flats will be a 384-unit midrise multifamily property consisting of 14 three-story residential buildings and four single-story non-residential buildings, including a leasing office, clubhouse and fitness center. Common area amenities include onsite management, a swimming pool, sports court, central laundry, recreational and picnic areas, a playground, game room and indoor kids’ playroom for families and children.
In-unit amenities for both properties will include patios/balconies, drapes/blinds, carpet/vinyl plank flooring, central air conditioning, coat closets, ceiling fans, washer/dryer connections, stainless steel appliance packages and walk-in closets.
Dominium, the sponsor, officially closed the projects simultaneously in December 2023 and will soon begin construction. Completion of both properties is expected within 24 months, followed by 12 months of leasing.