NEW YORK, NY - Greystone Housing Impact Investors LP (NYSE: GHI) announced it has provided construction and permanent financing for the new construction of a 40-unit mixed-income development located in La Mesa, California. The financing was originated by Frank Bravo, Managing Director at GHI, working in conjunction with Eliav Dan, Senior Managing Director, and Shana Daby, Managing Director, of Greystone on behalf of GWMP Investments, LLC.
The to-be-built property will be named 40rty on Colony and will include 20% of units designated for households earning up to 50% of the San Diego County Area Median Income (AMI). The property will include two (2) four-story buildings and one (1) three-story building consisting of 40 total multifamily units, as well as a community space, some enclosed garages, a carport and additional on-grade parking surface.
To finance the construction, GHI purchased tax-exempt recycled bonds and taxable bonds issued by the California Housing Finance Agency. GHI’s construction and permanent financing totals $11,900,000 ($5.95 million in tax-exempt bonds and $5.95 million in taxable bonds). At stabilization, and no later than 36 months from initial closing, the combined tax-exempt and taxable bonds, which are interest-only throughout the construction and permanent phases, will convert to a mini-permanent phase and will mature in June 2030.
“It was a pleasure working together to make this plan come to life and see the proliferation of much-needed affordable housing in San Diego County,” said Mr. Bravo.
“We are proud to have helped our client with a seamless execution of this construction financing and support the development of undersupplied affordable multifamily housing stock in San Diego County. We greatly appreciate our relationship with the sponsor, and our transaction correspondent, Max Benjamin Partners, serving as an instrumental part of the smooth closing process,” said Mr. Dan.
The property owner, GWMP Investments, LLC, retained Streamline Development Group to oversee construction and development.
“We feel we have assembled an excellent team to work together on executing our vision for this property, which will provide critical housing for the underserved workforce market in La Mesa,” said Mr. Greg Wayer, principal of the borrower.
About Greystone Housing Impact Investors LP: Greystone Housing Impact Investors LP (the “Partnership”) was formed in 1998 under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds which have been issued to provide construction and/or permanent financing for affordable multifamily, seniors and student housing properties. The Partnership is pursuing a business strategy of acquiring additional mortgage revenue bonds and other investments on a leveraged basis. The Partnership expects and believes the interest earned on these mortgage revenue bonds is excludable from gross income for federal income tax purposes. The Partnership seeks to achieve its investment growth strategy by investing in additional mortgage revenue bonds and other investments as permitted by its Second Amended and Restated Limited Partnership Agreement, dated December 5, 2022, taking advantage of attractive financing structures available in the securities market, and entering into interest rate risk management instruments. Greystone Housing Impact Investors LP press releases are available at www.ghiinvestors.com
About Greystone: Greystone is a leading national commercial real estate finance company with an established reputation as a leader in multifamily and healthcare finance, having ranked as a top FHA, Fannie Mae, and Freddie Mac lender in these sectors. Loans are offered through Greystone Servicing Company LLC, Greystone Funding Company LLC and/or other Greystone affiliates. For more information, visit www.greystone.com
Safe Harbor Statement: Information contained in this press release regarding Greystone Housing Impact Investors LP contains “forward-looking statements,” which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, risks involving current maturities of our financing arrangements and our ability to renew or refinance such maturities, fluctuations in short-term interest rates, collateral valuations, mortgage revenue bond investment valuations and overall economic and credit market conditions. For a further list and description of such risks, see the reports and other filings made by the Partnership with the Securities and Exchange Commission, including but not limited to, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Readers are urged to consider these factors carefully in evaluating the forward-looking statements. The Partnership disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.