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PHOENIX-Banc of America Community Development Corp., a subsidiary of Bank of America, has acquired the 288-unit Paradise Club Apartments in the Palomino neighborhood, using $11.3 million from its parent for acquisition and rehabilitation financing.

Paradise Club Apartments at 2825 E. Marconi Ave. is the community development subsidiary’s first acquisition in the Valley although it’s completed work on more than 24,000 affordable housing and mixed-income rental units in the US. The group has offices in 12 cities.

BofA says Paradise Club will remain affordable to residents earning 80% or less of the area’s median income of $26,200. The complex was built more than 20 years ago as condominiums. The property has since been converted to rental apartments and is about 90% occupied. All units are two bedrooms and range from 1,064 sf to 1,165 sf with an average monthly rent of $658. According to Benito Almanza, president of Bank of America Arizona, Paradise Club will undergo property improvement and repairs, which are expected to cost nearly $7,000 per unit.

Greg Hettrick, a senior equity manager based in Dallas, closed the transaction for the bank and will lead the property’s redevelopment. Lincoln Property Co. will provide onsite management.

Earlier this year, Bank of America announced a 10-year, $750-billion goal for community development lending and investing across its coast-to-coast franchise. It has loaned and invested more than $4 billion in the Phoenix area for community development since 1999.

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