Date: September 2018
Location: Phoenix, Arizona
Financing Amount and Type: $13.8 million in tax credit equity; $1.3 million conversion loan; $11.6 million bridge loan
Scope: 70 units
A new 70-unit mixed income property in downtown Phoenix will serve tenants making 60% or less of the area’s median income. Eighteen of the units are set aside for individuals with severe mental illness whose rents are subsidized by the State of Arizona.
In addition to providing residents with much-needed affordable housing, the development will lift up an older, established neighborhood near downtown Phoenix. An aging office building has been demolished and will soon be replaced with a new multifamily community. The building features an attractive Spanish Mission design that will visually complement existing retail space.
The location offers convenient access to mass transportation, education, employment centers, commercial services and major thoroughfares — making it ideal for working families.
Collaborating with Catholic Charities Community Services and Thomas Development Company, PNC Real Estate delivered a creative combination of equity, construction/permanent and bridge financing to make the development a reality.
Both entities are highly experienced in multifamily developments. Catholic Charities provides emergency, transitional and permanent supportive housing throughout Arizona and has developed 362 units in Maricopa County alone. Thomas Development Company has developed more than 4,000 units in 84 locations that include seniors, family and special needs tenancy.
In spite of their experience in the area, neither had worked with PNC before. Ultimately they were attracted to PNC because of the bank’s ability to provide a single source for equity and debt, offer competitive terms and make decisions quickly throughout a complex process. PNC appreciated the opportunity to work with Catholic Charities and Thomas Development.