CDT Partner: YES Housing
CDT Investment: $6,300,000
CDT partnered with YES Housing Inc., a leading non-profit developer of affordable housing in the region, to preserve 342 units of affordable housing in New Mexico for low-income senior citizens and special needs tenants in Roswell, Albuquerque, Las Cruces and Farmington, New Mexico.
The properties; Wildewood Apartments (Roswell), Brentwood Gardens Apartments (Albuquerque), Montana Meadows (Las Cruces) and Apple Ridge (Farmington) were all built in the late 1970s and all four were purchased by YES Housing, Inc. in the early 2000s via a 4% LIHTC syndication. The Properties are all subject to Low Income Housing Tax Credit Regulatory Agreements with the New Mexico Mortgage and Finance Authority. All the units across all four properties are covered by project-based Section 8 rental assistance contracts, which will remain in place through 2031 or beyond.
CDT invested total equity in the amount of approximately $6,300,000 across the four properties, where CDT is a 90% investor member and Yes Housing, Inc. is a 10% managing member. The CDT/YES joint venture placed new 10-year Freddie Mac debt on each of the properties through Hunt Mortgage, which will fund approximately $1,710,000 ($5,000 per unit) of rehab and initial capital reserves. Additionally, this transaction allowed YES to realize $13 million in net proceeds that will be used for pursuing new affordable housing developments and providing social services, while still remaining in day-to-day control of the properties.