Ravello Holdings secured $ 55.6 million in funding to build an affordable housing project called House’s Palmdale in Los Angeles County.
Merchant capital granted a loan of $ 31.6 million Indiana Merchant Bank and $ 24 million in ongoing funding from a 4 percent Low Income Housing Tax Credit (LIHTC). Fannie Mae Term commitment and permanent loan Fannie Mae. Merchants Capital is a subsidiary of the bank that shares its name.
Marsha goff, executive vice president of Merchants Capital, told Commercial Observer that Sawtelle-based, Beverly Hills-based Ravello Holdings Ascension capital are the two developers of the project, with WNC and associates as a LIHTC investor for the project. In total, the project will create 167,296 square feet of affordable housing in 6510 Neil Drive in the town of Palmdale.
“[Weâre] excited to be able to provide affordable housing with single family homes or detached townhouses as we call this structure, âsaid Goff.
Construction on the property began last month and is expected to be completed by the end of next year, according to a representative from Merchants Capital. The proceeds of the permanent loan will be used to refinance the construction loan, according to Stifel‘s Gary Brandt. Stifel is the bond underwriter for the project.
The property is the first in the state to be developed under new legislation that allows for greater density of lots, according to Merchants Capital. The law allowed the number of units on the property to drop from 59 to 118, Goff said.
âYou can basically double the density,â Goff said. âThen, of course, that makes this transaction more feasible as well. Doing 59 units is not as doable as [doing] 118. “
The development includes 118 single storey units ranging from two to three bedrooms. About 36 units are reserved for residents earning no more than 50 percent of the region’s median income, which was $ 62,865 from 2015 to 2019, according to United States Census Bureau. Another 81 units are reserved for residents earning no more than 60 percent of the region’s median income.
Ravello and Ascenda did not immediately respond to a request for comment.
Celia Young can be reached at [email protected].