Loan Type: Senior Affordable Housing
Total Development Cost: $4,695,573
Times Leveraged: 9.39x
Loan at a Glance:
PCG Capital and Community Housing Capital (CHC) collaborated to deliver a total loan of $3,132,250. PCG Capital provided a $500,000 loan. The funds covered predevelopment and acquisition costs to develop this 5-acre site for senior housing. This project will be the first affordable apartment complex for seniors in this submarket.
Project Summary:
Nevada Hand, Inc. (NVH) will develop a vacant site into a 150-unit affordable senior project financed with 4% LIHTC and tax-exempt bonds. The completed building will have an elevator, a clubhouse, 76 one-bedroom/one-bath, and 49 two-bedroom/one-bath apartments, all having affordability restrictions from 30% to 60% of AMI.
Borrower Summary:
NVH has over 25 years of experience developing affordable family housing, independent senior housing, and assisted living facilities. NVH owns and operates more than 5,000 units in 44 communities. NVH’s development pipeline has three projects (335 units) under construction with total development costs of $88 million, with another four projects (425 units) in predevelopment with projected costs of $150 million.
Loan Result:
Las Vegas is experiencing a severe shortage of rental apartments. Average vacancy rates are around 4% for Class B apartments, and rents have increased nearly 20% in the past 12 months. There are currently no apartment properties in the neighborhood. Based on current permitting, the low housing stock is expected to continue for the next 3 to 5 years. Neighborhood demographics are 35.7% Caucasian, 28.2% Black, 31.0% Hispanic, 27.0% Asian, and 9.1% other.