Transactions represent nearly $82M in deals closed or committed that will help finance almost 1,400 units of high-quality affordable housing.
SAN FRANCISCO, CA – August 15, 2024 – IMPACT Community Capital (“IMPACT”) announced today that it closed or committed to 13 affordable housing deals in the second quarter of 2024. These deals represent nearly $82 million of financing that will support the construction and preservation of 1,395 units of affordable housing.
IMPACT’s Q2 transactions included a $12.9 million tax-exempt loan financing the new construction development of Nathan Ridge, a 192-unit facility in Middleburg, Florida. The site will feature a community center, fitness center, swimming pool, playground, picnic pavilion, and a dog park. These amenities are in addition to a full suite of social services that include employment assistance counseling, financial management classes, and a homeownership opportunity program that provides downpayment assistance to tenants. Ten of the development’s units are restricted to tenants making 40% area median income (AMI), and the other 182 units are reserved for tenants making 60% AMI.
“In the multifamily space, the effects of higher rates have been felt for some time, weighing on valuations, financing costs, and deal volume for the past two years,” said Michael J. Lohmeier, Chief Investment Officer, IMPACT Community Capital. “The potential for imminent rate cuts may be positive – or, if due to a significant recession, it may foretell another period of tribulation for the industry.”
“However, one area of the multifamily market that is a little closer to hitting that reset button is affordable housing.,” Lohmeier continued. “Construction costs have moderated; deals are getting done; and vacancy rates are stable, as they’ve historically been for this acyclical asset class.”
During Q2, IMPACT also provided a $12.4 million bridge loan to Lake Grove Village, a 458-unit property on the South Side of Chicago. The property, which boasts amenities such as an on-site management office, community center, courtyards, playground, common laundry, and on-site parking, is conveniently located just four miles from downtown Chicago. Ninety-two of the facility’s units are supported by Section 8 project-based vouchers, and 230 units are restricted to tenants making 80% AMI or less.
About IMPACT Community Capital:
IMPACT Community Capital is a leading private debt and fixed income investment manager. Founded by major insurance companies, IMPACT has a 26-year track record of impact investing, primarily in affordable housing. With $2.9B of investments originated to date, IMPACT’s innovations in the capital markets result in institutional-quality investments in scale, while also advancing opportunity in underinvested communities. For more information about IMPACT Community Capital, please visit impactcapital.net.
Media Contact:
George Spencer
BackBay Communications