The development of a 160-unit mixed-income apartment community took a step forward in Wyoming, Michigan.
Berkadia Affordable announced it has closed on the financing for HŌM Flats at 28 West Phase 2. The development will provide 132 units of affordable workforce housing and 28 market-rate units to families in a working-class suburb of Grand Rapids.
The transaction is the first deal in the state for Berkadia Affordable’s low-income housing tax credit (LIHTC) syndication team.
“Berkadia Affordable is excited to support this development and our first LIHTC equity transaction in Michigan, expanding our portfolio to 34 states,” says managing director Andrew Anania.
The deal also marks the team’s first transaction with Magnus Capital Partners, a national developer with experience in California, Michigan, New York, North Carolina, and Texas.
“The first phase of HŌM Flats at 28 West has been met with an enthusiastic reception in the market and by the first residents who moved in earlier this year. The second phase of HŌM Flats at 28 West will build on the need to address West Michigan’s ‘missing middle’ housing crisis,” says Jenna Morton, director of marketing and business development for Magnus. “We have a unique moral obligation to help each other and contribute to the growth of our communities. Until we have met the market demand for socially responsible housing our mission will continue.”
Financing for HŌM Flats at 28 West Phase 2 includes approximately $5 million in LIHTC equity from the syndication of 4% LIHTCs by Berkadia, construction financing provided by Flagstar Bank, and permanent financing through the Michigan State Housing Development Authority.