Community HousingWorks for Azusa Apartments
Location: Azusa, CA
Loan Amount: $6,500,000
Loan Type: Interim Development
Project Description: NC provided a $6,500,000 Interim Acquistion Loan to Community HousingWorks (CHW) to acquire the Azusa Apartments, an 88-unit multifamily property in Azusa, CA that was being sold by a private owner. NC was able to provide a flexible second mortgage behind a bank. This loan was done in participation with Mercy Loan Fund, Partners for the Common Good, and National Housing Trust who share NC's focus on preservation of affordable housing. This is NC's fourth loan with this borrower.
Community HousingWorks (CHW) is undertaking a multifamily acquisition strategy in California where rental housing serving families at or below 60% of Area Median Income are converting to market rate. Before they finalized an offer of $18.4 million with the seller CHW approached NC to evaluate various financing scenarios. An important consideration for CHW was gaining a 20 year renewal of project-based rental assistance from HUD. With interest by various banks to finance up to 60% of appraised value NC was able to solve the financing gap with a three-year interest only loan of $6.5 million. This loan will give CHW ample time to submit various financing applications to state and federal housing programs for permanent financing.