New York, NY — Lument announced the closing of a $47.5 million Fannie Mae multifamily housing loan as permanent debt for Alta Verde II apartments, a to-be-constructed workforce housing community in Breckenridge, Colorado. Tim Hoppin led the transaction for Lument. Gorman & Company, LLC is the developer and partnered with the Town of Breckenridge on the project, which marks the second phase of Alta Verde’s development. The two organizations also collaborated on the first phase of Alta Verde, a 9% low-income housing tax credit community which is expected to open in late 2022.
The Fannie Mae loan for Alta Verde II is structured as a 30-month forward commitment and features a low, fixed interest rate. After the 30-month period, the loan will convert into a 10-year permanent loan that will fund the construction.
“We’re proud to have closed this transaction in collaboration with the sponsor, a repeat Fannie Mae borrower with extensive experience developing affordable and workforce housing,” said Lument’s Hoppin. “This loan will serve as permanent financing for a community that is truly at the forefront of addressing housing solutions for workers in a high-cost mountain resort community along with green energy efficiency.”
The community design includes several features intended to result in the release of net zero greenhouse gases.
“An important objective for the sponsor is to reduce the actual amount of energy required from operations. The construction plan incorporates solar panels to achieve this, while offsetting all of the energy demand,” added Hoppin.
The community will be built with all-electric construction, meaning there will be no gas at the property so it can be run solely on renewable and solar power. Other green features include reduced thermal loads through insulation and window designs, in-unit energy recovery ventilation, and other high-efficiency products. Community amenities include on-site property management, dog park, picnic area, fitness room, and a community room.
Expected to be completed in 2024, the community will feature 172 units in four buildings across a total of 130,200 square feet. Of the units, 86 (50 percent) will be income restricted at 80 percent area median income (AMI), 40 percent of the units will be restricted at 120 percent AMI, and the remaining 10 percent of units will not have an AMI restriction. All units will have a local workforce deed restriction at conversion for those working at least 1,800 hours per year in the county.
About Lument
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, investment sales, investment banking, and investment management solutions. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.