Phoenix Affordable Project Lands $29M Freddie Mac Loan

Phoenix Affordable Project Lands M Freddie Mac Loan
Phoenix Affordable Project Lands M Freddie Mac Loan

Mesquite terrace apartments. Image courtesy of Lumen

A partnership between Trinity Housing Development and the nonprofit Housing for Hope Arizona Inc. has awarded a Freddie Mac Unfunded Forward loan of $ 28.8 million.

Lument provided the Freddie Mac tax-exempt loan, which includes a 30-month unsecured deadline, a 17-year term, a 40-year amortization schedule, and a low fixed rate.

The mid-rise property is located at 5039 N. 19th Ave. take shape on a 3.1 acre site. The Mesquite Terrace Apartments will comprise 129 one-bedroom apartments, 78 two-bedroom apartments and 90 three-bedroom apartments in three buildings.

The community will be rent-restricted, with 285 units reserved for residents who earn 60 percent of the median income of the area or less, while 11 units are reserved for those who earn 50 percent of the AMI or less.

The completion of the Mesquite Terrace Apartments is scheduled for March 2023.

The community will place residents less than a mile from the West Camelback Road shopping corridor and less than 3.2 miles from a 252,000 square foot regional mall. Downtown Phoenix is ​​6 miles southeast of the property.

Additional funding

Zions Bancorp has provided a $ 48 million loan to develop the project. The loan is expected to mature in 2024, according to Maricopa County’s records.

The developers also secured a $ 1 million loan from the City of Phoenix to develop the HOME program and another $ 1 million loan.

Phoenix is ​​among the top 10 markets in the country for apartment building development, according to a recently released Yardi Matrix report. The subway had 31,371 units under construction as of May, as it continues to benefit from the positive demographic development in a business-friendly environment.

According to the latest Yardi Matrix data, a total of 1,780 units are under construction in one fully affordable and seven market-driven multi-family projects within a 5 km radius of the Mesquite Terrace Apartments.