Leading Affordable Housing Firm Purchases Sage Apartments with Nuveen Real Estate
CALABASAS, Calif., Nov. 30, 2021 /PRNewswire/ — Alliant Strategic Investments II, LLC (ASI) and its partner Nuveen Real Estate have acquired a 123-unit market-rate multifamily housing property known as Sage Apartments, located in Everett, WA. Consistent with the partners’ commitment to creating and preserving affordable and workforce housing, all of the units will now be subject to rent and income restrictions.
The business plan provides that all units are to be restricted to residents earning less than 80% of area median income. The restriction will be in place for a period of 99 years.
The acquisition, which closed on October 26, 2021, included a first mortgage loan from Freddie Mac and supplemental debt provided through the Amazon Housing Equity Fund. JLL underwrote both the Freddie Mac and Amazon loans. This complex transaction involved the purchase of membership interests in multiple limited liability companies.
Located 25 miles north of Seattle, Everett is the largest city in Snohomish County, WA, and is one of the largest cities in the metropolitan area and the Puget Sound region.
“We are proud to be the new owners of Sage and we want to thank everyone who worked so diligently to close this transaction,” said Russell Ginise, president of ASI. “With the support of our partner, Nuveen, and the collaboration of JLL, Freddie Mac, and Amazon, we will invest in the renewal of the property and provide community-oriented services, resulting in an enhanced residential experience at Sage. Their contributions will serve to reinvigorate this property and result in a thriving workforce community for many years to come.”
“This transaction demonstrates how catalytic capital with institutional equity can be combined to address affordability in a high-growth corridor without the use of local, state or federal subsidy,” said Pamela West, Managing Director of Nuveen Real Estate.
“This transaction establishes an excellent affordable housing model that can be replicated in other regions across the country and we are proud to have represented ASI in connection with this acquisition,” said Colette Dafoe, a partner with Nixon Peabody’s Affordable Housing & Real Estate who led the firm’s deal team. “Increasing and preserving the supply of affordable housing requires a balance of creative solutions and collaboration. This deal is a great example of how to accomplish that.”
“The Amazon Housing Equity Fund is truly making an impact and this transaction is a great example of putting words into action,” C.W. Early, Senior Managing Director, JLL Capital Markets said. “They provided attractive long- term subordinate financing to allow ASI to purchase and renovate the property, which included putting 99-year affordability restrictions in place.”
“Furthermore, the Amazon Housing Equity Fund continues to demonstrate innovative means to address financing gaps in the market to facilitate the delivery of critically important affordable housing units,” Martine Combal, Senior Vice President, JLL Public Institutions stated.
The property will be managed by Thrive Communities, a Seattle-based property management firm with more than 16,000 apartments under management in the PNW.
The Amazon Housing Equity Fund is a more than $2 billion commitment to preserve and create more than 20,000 affordable housing units in Washington state’s Puget Sound region; in and around Arlington, Virginia; and Nashville, Tennessee—three hometown communities where the company has a large and growing presence. The Amazon Housing Equity Fund increases housing options for moderate-to-low-income families by providing affordable housing providers with quick access to low-rate loans to create or preserve buildings where affordability would have otherwise been lost to commercial-rate development. The fund will also provide cash grants to businesses, nonprofits, and minority-led organizations to help them build a more inclusive solution to the affordable housing crisis, which disproportionately affects communities of color.
About Alliant Strategic Investments
Alliant Strategic Investments (ASI) focuses on socially responsible multifamily investments that directly impact the lives of America’s low-income and workforce residents. The creation and preservation of affordable and workforce housing allows residents to enjoy the benefits of a safe, healthy and stable environment. With extensive experience underwriting, investing in, and managing affordable and market-rate multifamily properties, our principals bring deep industry knowledge and invaluable relationships with the nation’s top multifamily partners. For further information, visit alliantstrategic.com.
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SOURCE Alliant Strategic Investments