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PHOENIX-The city’s first mutual housing project clears final hurdles as Rocky Mountain Mutual Housing Association closes on the $17.3-million takeover of the 420-unit Bay Club Apartments in Phoenix’s MetroCenter submarket. The project, ticketed for rehabilitation, guarantees 168 units for affordable housing.

Tyler Anderson and Sean Cunningham, both senior vice presidents of CB Richard Ellis Inc.’s Phoenix office, represented the seller, Equity Residential Properties Trust of Chicago. Brad Pickering of Crown West Commercial Real Estate of Phoenix acted on the buyer’s behalf. The 26-year-old complex at 11050 N. Biltmore Dr. was one of 63 properties, totaling 17,697 units, in Equity’s Arizona portfolio.

The final closing was a high-profile deal made possible through public and private financing. Rocky Mountain Mutual Housing received $850,000 from a $33.7-million city bond sale, of which $5 million was set aside for nonprofit organizations promoting affordable housing projects in the region. Under the city loan terms, Rocky Mountain Mutual Housing Association will repay the 35-year financing at a rate of about 5.50% interest.

The balance of the acquisition cost was financed through HUD’s Ginnie Mae program; a private loan for nearly $1.3 million; $250,000 from the Phoenix Industrial Development Authority direct loan program; $500,000 in state housing funds; and $55,680 in developer funds. The public financing guarantees 168 units will be reserved for households falling 60% below the median-income level.

The Bay Club purchaser is a Denver-based nonprofit advocacy organization founded in 1992 to develop affordable housing projects. Rocky Mountain Mutual Housing owns or manages nearly 2,000 units in Arizona, Colorado and Utah. Its residents earn from $7 to $20 per hour. Mutual housing complexes provide a voice in management and regulations to residents, who pay monthly housing charges instead of rent.

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