2018 Midwestern Lender’s Conference 221(d)(4) Panel Case Study: Canyons at 45 West Apartments Amarillo, Texas

Canyons at 45 West Deal Overview Deal Type 221(d)(4) – New Construction Project Type Multifamily Total Units 328 Affordability 328 @ 60% AMI Original Mortgage Amount $24,900,000 (including Tax Credit Equity of $11,319,965) Term 40 years Rate High 3% + 0.25% MIP Sponsor / Developer Amenities (building) Amenities (Unit) Clubhouse, on-site office, 24-hour coin-less laundry facility, 24 hour business center, 24 hour fitness facility, limited access security gate, free Wi-Fi, swimming pool, gas grills, picnic areas, playground, dog-park, and free covered parking. Standard appliances (frost free refrigerator, electric oven/stove, dishwasher, and microwave), 9’ ceilings, walk-in closets, full size washer/dryer connections, patio/balconies with storage, carpet and vinyl plank flooring, and wood burning fireplaces in select units.  

Canyons at 45 West

Canyons at 45 West

Canyons at 45 West

Canyons at 45 West The Project is a substantial rehabilitation of an existing market rate 328 unit project in 41 buildings which was developed in 1974 and 1980. The Project will be converted to 100% affordable housing through the Low Income Housing Tax Credit Program (LIHTC). The proposed loan is to provide tax exempt bond credit enhancement for the acquisition and substantial improvements to the Project, which will also result in the issuance of approximately $1,354,000 in annual low income housing tax credits which will generate +/- $13,000,000 in equity. An affiliate of the Housing Finance Corporation will act as the tax exempt bond issuer and the lessor of the Ground Lease in order for the Project to be fully exempt from real estate tax payments. The administrative General Partner will be controlled by Sponsor, the Project sponsor, who will maintain operational control of the Project. PNC Real Estate will control the LIHTC investor and also provide a +/- $8.3 million equity bridge loan. September, 2018

Canyons at 45 West

Canyons at 45 West Underwriting Focus: 1. Transition from Market to LIHTC 2. Real Estate Tax Exemption – Ground Lease 3. HUD IOD Requirements and Syndicator Operating Reserves 4. Special Limited Partner Pre-Approval

Canyons at 45 West Month 00, 2014