Philadelphia, PA – October 13, 2020 – Berkadia Affordable is pleased to announce it has closed on HŌM Flats at 28 West Phase 2, a 160-unit, new construction, mixed-income apartment community in Wyoming, Michigan.
Once complete, the development will provide 132 units of high-quality, affordable workforce housing and 28 units of market-rate housing to families in the working-class suburb of Grand Rapids. The transaction is the first deal in the state of Michigan for Berkadia Affordable’s 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,” said Managing Director Andrew Anania.
The deal also marks the team’s first transaction with Magnus Capital Partners, a national developer with experience in Michigan, North Carolina, New York, California and Texas. Their investment into the second phase of the HŌM Flats at 28 West development underscores their commitment to address the workforce housing shortage in Michigan.
“Community is an important component of the HŌM Flats mission,” Vishal Arora, Founder and CEO of Magnus Capital Partners adds. “We are thankful for the partnership with Berkadia and Flagstar to address the shortage of high-quality affordable workforce housing in West Michigan.”
“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” said 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.”
“Flagstar Bank has long been committed to the communities we serve,” said Vincent Maine, Senior Relationship Manager of Community Development at Flagstar. “Throughout all economic cycles in our 33 years in business, we have continued to reinvest in our local communities and we are proud to provide financing and investment for this important project in our home state.”
Financing for the HŌM Flats at 28 West Phase 2 transaction includes equity generated from the syndication of four percent Federal Low-Income Housing Tax Credits, construction financing provided by Flagstar Bank and permanent financing through the Michigan State Housing Authority Development Authority.