R4 Capital, a national affordable housing tax-credit syndicator and asset manager, and R4 Capital Funding (R4CF), its affiliated mortgage lending platform, celebrated todays ribbon cutting ceremony for Verdes del Oriente (Verdes), a 113-unit subsidized garden apartment complex in the San Pedro neighborhood of Los Angeles, California. R4 Capital and R4CF jointly arranged $17.3 million of LIHTC equity investment and $43 million of tax-exempt financing for Orbach Affordable Housing Solutions (OAHS) to acquire, renovate and preserve the low-income multifamily housing.
Verdes, originally constructed in 1976, operates as a family-oriented community proximate to the Port of Los Angeles, the worlds busiest port. OAHS spent an estimated $82,000 per unit to provide tenants with functionally new apartment interiors and modernized operating systems. The Verdes leasing office was remodeled to build a community center for expanded afterschool programs and to provide adult continuing education classes.
Orbach is proud to invest in affordable housing in the Los Angeles area. With the purchase of Verdes, we can use our resources and expertise to help lower income families in an area that is often listed as one of the most expensive to live in the country, notes Jay Reinhard, President of OAHS. By working with R4s tax credit equity and bond programs in tandem, we raised tax credit equity and mortgage capital through a single structuring and approval process. OAHS appreciated the efficiency of this financing approach which allowed our team to focus on developing the property and rebuilding the community.
To raise mortgage capital for Verdes, R4CF worked in partnership with California regional banks with whom it has financed over $65 million in mortgages on affordable housing properties in Southern California. According to James Spound, President of R4 Capital Funding, A goal of this partnership is to facilitate innovative affordable housing investment opportunities for area banks with a vested interest in improving housing opportunities within their own communities.
Paul Connolly, Executive Vice President at R4, added, Transactions like Verdes distinguish R4 Capital within the affordable housing finance industry for its ability to provide true one-stop-shop equity and debt solutions that help developers execute transactions in a timely and cost-effective manner.