R4 Capital funds new affordable housing in historic Mount Clemens, MI
NEW YORK–(BUSINESS WIRE)–Capital R4, a national affordable housing tax credit syndicator, lender and asset manager, has arranged over $8 million in gross tax credit equity financing to build a new apartment complex with 30-unit support services, Edison Crossing, located within walking distance of downtown Mount Clemens, MI and 20 miles northeast of Detroit. R4’s equity investment in Edison Crossing is one of 18 planned real estate investments for R4 Housing Partners XVII LP (“Fund XVII”), a $262 million nationwide multi-investor fund.
Edison Crossing is being developed by Columbus, Ohio-based Woda Cooper Companies, one of the nation’s leading affordable housing developers. Over the past 30 years, Woda has successfully financed more than 11,000 affordable rental homes with housing tax credits in 15 states. Woda will also be the general contractor and managing agent for this property. The property will be restricted to residents earning up to 80% of area median income using income averaging and will consist of ten one-bedroom units and 20 two-bedroom units in a four-story residential building serviced by an elevator . Eleven units will be reserved as permanent supportive housing units for chronically homeless individuals and households and will benefit from project-based Section 8 vouchers provided by the Michigan State Housing Development Authority (“MSHDA”) . These units should be pre-let given the significant need for housing for the homeless. Macomb Homeless Coalition will provide on-site services to PSH tenants and coordinate with external service agencies such as Michigan’s AMVETS Department. They will also provide social services, including employment-related services, including employment-related services, mental health services, and advice on financial and budget management. Additionally, residents may be referred to service agencies for benefits advice, employment training, literacy services, assistance in obtaining transportation, transportation training in common and any other needs of the residents.
In addition to R4 tax credit equity, other funding partners include Comerica Bank, RiverHills Bank, Erie Capital CDFI Fund, LLC, and a support services contribution in the form of reinvested development costs.
Comerica Bank (“Comerica”), one of the investors in Fund XVII, will provide a construction loan of more than $7 million to Edison Crossing.
“Investing in affordable housing initiatives has a positive impact on underserved communities,” said Beatrice Kelly, Senior Vice President of Community Development Lending, Comerica Bank. “This partnership, led by R4 Capital, represents the kind of resources needed to help overcome the many challenges people face. Our goal in supporting the development of Edison Crossing is to remove barriers and improve our communities in which we live and work.
Remarks Jason Gershwin, Executive Vice President of R4 Capital, “We are proud to partner with our developer and investor partners to fund safe, quality affordable housing and, more so, to make available to residents who need it. and who want support services. This is what building a community is all about.
Edison Crossing closed in December 2021 and construction is expected to be completed within 15 months.
About R4 Capital
R4 Capital is a nationwide syndicator, lender, loan manager and asset manager. Founded in 2011, the firm manages over $6.5 billion in equity and debt investments in affordable housing, including over $4.3 billion in LIHTC equity and $2.2 billion in debt tax exempt. R4 Capital’s growing investment portfolio spans 48 US states and territories and includes more than 50,000 affordable housing units. R4 Capital has offices in New York, NY, Boston, MA, Newport Beach, CA and Austin, TX.
Comerica Incorporated (NYSE: CMA) is a financial services company headquartered in Dallas, Texas, and strategically aligned with three lines of business: commercial banking, retail banking and wealth management. Comerica focuses on relationships and helping people and businesses succeed. In addition to Texas, Comerica Bank branches are found in Arizona, California, Florida and Michigan, with select companies operating in several other states, as well as Canada and Mexico. Comerica reported total assets of $94.6 billion as of December 31, 2021.