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Tuesday, May 17, 2022

Apple Tree’s Seed Money

Hunt Capital Partners announced in November that it had closed a $13.7 million federal low-income housing tax credit equity financing for the acquisition and rehabilitation of Apple Tree Village.

Located in North Hills, Apple Tree Village is an existing LIHTC development offering 125 units to local low-income families.The rehabilitation of Apple Tree Village, originally built in 2002, will include efforts to make the property more energy efficient and modern, including ADA modifications to the building’s exterior and community room, and updates to 11 ADA units and four units for audio/visual impaired individuals. Additionally, upgrades will be made to unit finishes, common areas, property exteriors and grounds. As a tenant-in-place rehab, renters will move into completed units that were previously held vacant. No tenant will be temporarily or permanently relocated offsite during the process.“The Los Angeles County 2020 Affordable Housing Needs Report said that 84 percent of very low-income households are cost-burdened,” said Hunt Capital Partners Executive Managing Director Dana Mayo in a statement. “Extending the life and affordability of Apple Tree Village is a step toward addressing this need. We are pleased to preserve Apple Tree Village and provide housing options for those who need it most.”Upon completion of the rehab in December, Apple Tree Village will offer 47 two-bedroom and 75 three-bedroom renovated units. Units are set aside for households earning up to 30, 40 and 50 percent of the area median income, with one two-bedroom and two three-bedroom exempt units. Community amenities include a business center, community room, laundry facilities, outdoor recreation space and on-site management.

The development will also benefit from free supportive services for residents provided by Initiating Change in Neighborhoods Community Development Corp. These services will include 10 hours per week of after school programs and 84 hours per year of instructor-led educational health and wellness or skill-building courses.The $13.7 million federal low-income housing tax credit equity financing is only one component of Apple Tree Village’s overall development cost, which totaled $44.3 million. Deutsche Bank provided a $30 million construction loan, along with a $19.5 million permanent loan. Hunt Capital Partners facilitated the investment through Hunt Capital Partners Tax Credit Fund 39, a proprietary investment fund.

ABS Properties Inc., a company solely owned by Samir Srivastava, served as the administrative general partner and developer, and provided a $4 million seller note. The general contractor is Precision General Commercial Contractors Inc.

and Grace Partnership Inc. is project architect. Genessy Management and Development LLC acts as management agent.Hunt Capital Partners is the tax credit syndication division of Hunt Cos. Inc., specializing in the sponsorship of federal and state low-income housing, historic and solar tax credit investments funds. Since its 2010 inception, Hunt has raised over $2.2 billion in tax credit equity across more than 40 proprietary and multi-investor funds.

Michael Aushenker
Michael Aushenker
A graduate of Cornell University, Michael covers commercial real estate for the San Fernando Valley Business Journal. Prior to the Business Journal, Michael covered the community and entertainment beats as a staff writer for various newspapers, including the Jewish Journal of Greater Los Angeles, The Palisadian-Post, The Argonaut and Acorn Newspapers. He has also freelanced for the Santa Barbara Independent, VC Reporter, Malibu Times and Los Feliz Ledger.

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