Families will be able to retain access to affordable housing, thanks to a $320 million collaboration between Fairfield and PNC Multifamily Capital.

The Villages at Marley Station Apartments is a 757-unit property comprised of 32 acres, located in the town of Glen Burnie in the Baltimore, Maryland metropolitan area. The property was approaching the ends of its Low Income Housing Tax Credit (LIHTC) compliance period, and Fairfield, based in San Diego, California, stepped in to seek another LIHTC allocation. Fairfield is an owner, developer, and operator of multifamily communities throughout the U.S. Their goal was to preserve affordable housing status for the tenants and renovate the property’s apartment units, all of which are designated for residents who earn up to 60% of area median income (AMI).

The financing required for the project was significant, not only due to the expansive size of the property, but also the estimated cost per unit for renovation. But PNC Multifamily Capital was committed to proving they could help make it happen.

“While this particular LIHTC project was significant simply in terms of its sheer size, we knew that we had the capacity and the demonstrated experience in the LIHTC space to take it on,” said Michael Gaber, PNC Multifamily Capital senior originator. “It took careful collaboration, but ultimately PNC was able to meet the full $320 million in total renovation costs.”

PNC directly invested $120 million in LIHTC equity and provided $192 million through a construction/bridge loan, as well as $98 million in permanent financing – successfully closing on PNC’s largest ever LIHTC project deal.

The financial scope was not the only significant consideration involved in the project, as PNC Multifamily Capital also had to work closely with local and state governments to ensure a successful completion. “Because this was such a large transaction with significant implications in terms of LIHTC resources, we had to be very diligent in working to secure approval from housing finance authorities and other government entities,” said Mark Eastman, PNC Multifamily Capital underwriter.

“In the end, the effort was certainly worthwhile, because if we had not been able to bring this LIHTC syndication to a successful close, these 757 units of affordable housing inventory could have transitioned to market rate units, raising rents to a level that many residents may not have been able to afford,” said John Nunnery, manager of tax credit originations for PNC Multifamily Capital. “We’re proud of what we were able to accomplish, not only in terms of executing on a considerable and complex transaction, but also because of the meaningful impact it is going to have for the Baltimore community.”

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PNC Multifamily Capital is one of the largest, comprehensive multifamily debt and equity financing providers within the industry for affordable, seniors housing and conventional products. Each year, PNC Multifamily Capital finances or invests in affordable and seniors housing projects to address the shortage of housing options and help communities thrive. Reach out to PNC Multifamily Capital to learn more, or contact your relationship manager.

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