WASHINGTON (Nov. 4, 2024)—Leading financial services provider Merchants Capital today announced $46.6 million in financing for the acquisition of two affordable housing developments for Dominium, a leading affordable housing owner, developer and manager. The acquisition financing was provided by Merchants Bank, parent company to Merchants Capital.
Permanent and mezzanine loans totaling $28.3 million were secured for Villa Hermosa, a 288-unit multifamily development in Albuquerque, N.M., Dominium’s first property in the state. Similarly, more than $18.3 million was secured for Cholla Ranch Apartments, a 180-unit multifamily development in Buckeye, Ariz.
Both properties are affordable, with rehabilitation and re-syndication of tax credits being planned. A $13 million tenant-in-place rehabilitation is expected to begin in spring of 2025 at Villa Hermosa with the re-syndication of tax credits. There will be upgrades to unit interiors and common area amenities. One hundred percent of Villa Hermosa’s units are currently restricted to 60% area median income (AMI) and the affordability will remain in place post re-syndication.
Dominium will begin a $7 million tenant-in-place rehabilitation and tax credit re-syndication in early 2025 for Cholla Ranch Apartments. One hundred twenty-four units are currently restricted for tenants at 30%, 40%, 50% and 60% AMI; the remaining units are market rate. The re-syndication will render the project fully affordable, with the conversion of market-rate units to units restricted at 70% AMI. The other restrictions will remain in place.
Founded in 1972, Dominium builds and manages high-quality affordable homes. The company owns and manages more than 40,000 units in 20 states.Villa Hermosa offers 48 one-bedroom units, 216 two-bedroom units, 24 three-bedroom units with washer and dryer connections and a balcony or patio. The property’s amenities include swimming pool, clubhouse, fitness center and secured gate access and has convenient access to Interstate 40.
Cholla Ranch Apartments offers 2- and 3-bedroom units and a clubhouse, pool, spa, playground, covered parking, laundry facility, storage spaces, gym, BBQ/picnic area and courtyards. Located within the growing Phoenix Metropolitan area about 30 miles west of the center of Phoenix, the property is in proximity to employment opportunities in major industries that include aerospace, finance, healthcare, IT, manufacturing, and warehousing and distribution.
“We appreciate the partnership of Merchants Capital in helping Dominium further its mission of persevering and building much-needed affordable housing across the United States,” said Mark Lambing, Dominium Vice President and Project Partner. “These two acquisitions enable us to preserve the affordability of nearly 475 apartment homes in Arizona and New Mexico, which will benefit these communities and their residents for years to come.”
To learn more about Merchants Capital and its services, visit www.merchantscapital.com or find Merchants Capital on Facebook, X, LinkedIn and Instagram.
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