R4 Capital, a national affordable housing tax-credit syndicator and asset
manager, and R4 Capital Funding (R4CF), its affiliated mortgage lending
platform, celebrated today’s ribbon cutting ceremony for Verdes del Oriente
(Verdes), a 113-unit subsidized garden apartment complex in the San Pedro
neighborhood of Los Angeles, California. R4 Capital and R4CF jointly arranged
$17.3 million of LIHTC equity investment and $43 million of tax-exempt
financing for Orbach Affordable Housing Solutions (OAHS) to acquire, renovate
and preserve the low-income multifamily housing.
Verdes, originally constructed in 1976, operates as a family-oriented
community proximate to the Port of Los Angeles, the world’s busiest port. OAHS
spent an estimated $82,000 per unit to provide tenants with functionally new
apartment interiors and modernized operating systems. The Verdes leasing
office was remodeled to build a community center for expanded afterschool
programs and to provide adult continuing education classes.
“Orbach is proud to invest in affordable housing in the Los Angeles area. With
the purchase of Verdes, we can use our resources and expertise to help lower
income families in an area that is often listed as one of the most expensive
to live in the country,” notes Jay Reinhard, President of OAHS. “By working
with R4’s tax credit equity and bond programs in tandem, we raised tax credit
equity and mortgage capital through a single structuring and approval process.
OAHS appreciated the efficiency of this financing approach which allowed our
team to focus on developing the property and rebuilding the community.”
To raise mortgage capital for Verdes, R4CF worked in partnership with
California regional banks with whom it has financed over $65 million in
mortgages on affordable housing properties in Southern California. According
to James Spound, President of R4 Capital Funding, “A goal of this partnership
is to facilitate innovative affordable housing investment opportunities for
area banks with a vested interest in improving housing opportunities within
their own communities.”
Paul Connolly, Executive Vice President at R4, added, “Transactions like
Verdes distinguish R4 Capital within the affordable housing finance industry
for its ability to provide true one-stop-shop equity and debt solutions that
help developers execute transactions in a timely and cost-effective manner.”