NEW YORK--(BUSINESS WIRE)--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.”