Transactions represent more than $166M in new commitments and purchases that will help finance nearly 2,000 units of high-quality affordable housing.
SAN FRANCISCO, CA – March 11, 2024 – IMPACT Community Capital (“IMPACT”) announced today that it finished a strong 2023 by closing 21 affordable housing deals in the fourth quarter. Collectively, these deals reflect more than $166 million closed or committed in the final three months of the year that will support the financing of 1,990 units of affordable housing.
Collectively, throughout 2023, IMPACT helped finance 6,196 units of affordable housing through new commitments, purchases, and bridge loans totaling $452.5 million.
“2023 was a year in which economic headwinds – highlighted by higher mortgage rates and property insurance costs, as well as declining property valuations – combined to further limit availability of affordable multifamily housing. However, we know that the demand for housing that’s safe, sanitary, and affordable persists regardless of economic environment,” said Michael J. Lohmeier, Chief Investment Officer, IMPACT Community Capital. “This dynamic, with increased mortgage rates and significant undersupply, provides an opportunity for investors to find attractive returns, commensurate with the risk, through debt investment in affordable multifamily.”
Among the transactions IMPACT closed in Q4 were $10.8 million in taxable permanent loans made to Harmony at the Park, a 120-unit new construction development that is part of a multiphase project with the City of Phoenix. Located at the site of a former public housing development 1.5 miles from downtown Phoenix, the project will include four residential elevator buildings, a pool house, pool, community room, fitness center, and children’s play area. In Phase I, 35 of the units are covered by Project-Based Vouchers (PBV), 50 units are Low-Income Housing Tax Credit (LIHTC) units set aside for tenants making between 40% and 60% of area median income (AMI), and the remaining 35 units are unrestricted market rate units.
IMPACT also provided a $28.5 million bridge loan during Q4 to Model City II, a 256-unit multifamily development in Kingsport, Tennessee. Originally constructed in 1973 and renovated in 2010 with LIHTC equity, the site features 16 two-story residential buildings, a leasing office, clubhouse, laundry area, playground, basketball court, and picnic area spread across a 21.5-acre property. All of the property’s units are covered by Section 8 PBVs and are dedicated to residents making less than or equal to 60% AMI.
About IMPACT Community Capital
Founded in 1998 by leading insurance companies to generate institutional-quality, purpose-driven investments, IMPACT Community Capital is a leading investment manager in impact investing. One of the first managers to use mortgage-backed securitization to deliver capital in scale for affordable housing, the firm has now originated $2.5 billion in investments to provide affordable housing, healthcare, childcare, and economic opportunities. IMPACT delivers institutional investment solutions that may unlock value for investors while advancing opportunity in underinvested communities through impact-driven investments. For more information, visit impactcapital.net.
Media Contact
George Spencer
BackBay Communications
impactcapital@backbaycommunications.com
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