Loan Type: Affordable Housing
Total Development Cost: $2,645,000
Times Leveraged: 5.29x
Loan at a Glance:
PCG Capital collaborated with Virginia Community Capital (VCC) to provide a non-revolving line of credit to Genesis Properties, utilizing our GAP loan product. This partnership with VCC, a CDFI loan fund, bank and CDBA member, extends our lending relationship with the organization. VCC has a successful track record in affordable housing deals.
Project Summary:
The line of credit was used to plan and finalize the development of vacant land into an affordable housing property creating 150 units with rent restrictions by the Low-Income Housing Tax Credit (LIHTC) program. The units will be affordable to residents making at or below 60% AMI. The apartments will serve a community that is 54.8% BIPOC with a median household income of $44,825. These affordable housing units will help all residents save $245,000 annually compared to market rate rents.
Borrower Summary:
Genesis Properties, Inc. is a BIPOC owned business with over 45 years of experience and over 1,400 affordable housing units in its portfolio. Genesis will serve as the project manager.
Loan Result:
The loan allows Genesis to finalize details of its long-term plan to develop and syndicate the building for LIHTC purposes which will benefit low-income families in the area. This property is located in an area of Richmond with banks, grocery stores, hospitals, parks, and interstate access. This property provides the opportunity for low and middle income families to live in a neighborhood that is convenient and affordable.