A $26.1 million construction loan and $31.1 million in LIHTC will fund the 173-unit project
Capital One has provided a $26.1 million construction loan and $31.1 million in low income housing tax credits (LIHTC) for Gilliam Place, a 173-unit affordable housing community in Arlington, Va., Commercial Observer can first report.
Arlington Partnership for Affordable Housing (APAH) is developing the 122,000-square-foot community, which will include 9,000 square feet of commercial space that will be dedicated to local nonprofits. Nine of the 173 units will be reserved for people with special needs, 32 for those making up to 50 percent of the average mean income (AMI) and the remainder for those making up to 60 percent AMI. Since its founding in 1989, APAH has constructed 15 affordable residential properties with 1,363 units in the Arlington area.
Edmund Delany, senior director and senior capital officer in Capital One’s Community Finance Group originated the transactions, which closed simultaneously. Proceeds will be used for the concurrent construction of two projects on the same campus—Gilliam Place East and Gilliam Place West.
The $26.1 million, adjustable-rate construction loan will be used for the development of Gilliam Place East, a 83-unit community, for which the lender also purchased $21.8 million in LIHTC through Enterprise Community Investment. The project’s financing package also includes a permanent loan from the Virginia Housing Development Authority (VHDA), loans through the VHDA Sponsoring Partnerships and Revitalizing Communities (SPARC) and Resources Enabling Affordable Community Housing in Virginia (REACH Virginia) programs, a permanent loan from the Virginia Housing Trust Fund and additional financing from Arlington Housing Investment Fund and APAH.
Capital One purchased $9.3 million in LIHTC equity for Gilliam Place West, which will have 90 units of affordable housing when constructed. Its financing also includes VHDA bridge bonds and a VHDA construction-to-permanent bond, loans through the SPARC and REACH Virginia programs, and additional loans from the Arlington Housing Investment Fund and APAH.
“These are extremely complex transactions to close and we need strong partners, like Capital One, to make them happen,” said Nina Janopaul, APAH’S chief executive officer. “APAH appreciates Capital One’s incredible support with both $31 million of equity financing and generous philanthropic support.”
Resident services at the project will include educational after-school programs, financial and employment counseling, language skills classes, and health and wellness screenings.
“Like APAH, we believe that a successful affordable housing community does more than provide a roof over the heads of its residents. It provides a platform for a more fulfilling life,” Delany said, in prepared remarks. “Low income housing tax credits were a crucial piece of the financing needed to make Gilliam Place, and the addition of 173 affordable homes to the Arlington community, a reality. The support of the resident services programs can make the difference between providing a place to live and providing the means to thrive.”