Philadelphia, PA – March 27, 2020 – Berkadia’s Affordable Housing team is pleased to announce it has invested $33 million in Jordan Downs Phase S3, a new construction development in the Watts neighborhood of Los Angeles, California. Jordan Downs Phase S3 will provide 91 units to households earning between 30%-80% AMI. It is part of a transformative 70-acre multi-phase redevelopment effort, led by Michaels, BRIDGE Housing, and The Housing Authority of the City of Los Angeles (HACLA). Once complete, the redevelopment will transform the 700 existing public housing units into a development comprising 1,400 units of housing and new community amenities for the Watts neighborhood.
“Berkadia is excited to expand our partnership with Michaels to finance phase 3 of this essential redevelopment effort in the state of California” said Josh Levy, Managing Director and Head of Production, Berkadia’s Affordable Housing team.
Jordan Downs Phase S3 will consist of rental subsidies through Project-Based Section 8 contracts and the Rental Assistance Demonstration (RAD) program. The building will reserve seventeen units to be fully accessible to residents with physical disabilities and hearing or visual impairments.
“The unprecedented collaborative efforts of HACLA, residents, community stakeholders, and our financial partners, along with the strong leadership of political officials at the local, state, and federal level continue to drive exciting milestones in the transformation of Jordan Downs,” said Kecia Boulware, Vice President of Development, at Michaels. “We are incredibly grateful to be able to keep moving forward, even during this most difficult time for California and our nation.”
“We are motivated by the collaborative efforts of our investors and lenders who successfully navigated through the complexities of closing this deal during COVID-19,” said David Leopold, SVP and Head of Berkadia’s Affordable Housing team. “It is important now, more than ever, to continue providing exceptional client service and communication to our partners so that collectively we can provide safe and affordable housing to residents in California and across the country”.
Jordan Downs Phase S3 is being financed by equity from Berkadia’s purchase of 9 percent Federal Low-Income Housing Tax Credits and permanent loans through Freddie Mac, the State of California’s Affordable Housing Sustainable Communities program, and the Housing Authority of the City of Los Angeles.