X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Read more on the multifamily market.)

NORWALK, CT-GE Real Estate and Capmark Financial Group Inc. of San Mateo, CA report they are investing a total of $107 million in more than 2,000 affordable housing units and some senior housing communities across the US.

The portfolio involves 2,218 affordable housing units in 14 states and five senior housing properties. The companies say that approximately 75% of the tax credit investment is targeted at suburban markets with the balance going to urban and rural regions. About 31% of the properties in the portfolio have rental assistance available for their residents.

Approximately 85% of the affordable housing units in the portfolio are located in four states: Illinois, 789 units; California, 601 units; Florida, 260 units and Georgia, 238 units.

“For more than 10 years, GE has provided capital to help facilitate the development and preservation of affordable housing,” says James Mendelson, managing director, GE Real Estate, which is based here. “We’re excited to add these properties to our portfolio and particularly pleased with the geographical diversity of these assets. This is one of GE’s largest tax credit investments in the affordable housing industry, and we were pleased to work through this complex transaction with such efficiency.”

David Sebastian, managing director, LIHTC Platform, Capmark Financial, adds, “GE Real Estate brought a tremendous amount of experience and savvy to this highly structured transaction. The deal was deal was complicated, and their expertise was essential in getting the deal finalized.”

David Mevis, senior director of GE Real Estate, says the deal is the largest investment by the firm in the affordable housing sector and is part of the firm’s Section 42 Tax Credit Equity Program. He says the properties, which are either new construction or properties that are undergoing substantial rehabilitation, were built by 19 different developers.

He says that Capmark originally purchased a limited partnership in the properties several years ago and saw the developments through construction and rent-up. GE Real Estate contributed the entire $107 million into the fund that acquired 99% interest in the portfolio, Mevis notes. Capmark is general partner of the fund and GE Real Estate is the limited partner of the new fund.

Mevis adds that GE Real Estate will be discussing possible affordable housing financing opportunities with Capmark in the near future.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.