Lenders Reunite to Provide Over $2.5 Million of Long-Term Financing for Myrtle Terraces Senior Community, an 84-Unit Affordable Housing Project in Gainesville, Georgia
NEW YORK, NY--(Marketwired - Nov 10, 2015) - The Community Development Trust (CDT), which provides debt and equity capital for the creation and preservation of affordable housing, today announced it has expanded its relationship with TIAA-CREF, a U.S. financial services organization, by lending over $2.5 million in senior affordable housing. The collaboration will provide a first mortgage loan with an 18-year term for Myrtle Terraces, an 84-unit senior affordable housing property in Gainesville, Georgia about 50 miles northeast of Atlanta. Previously, CDT and TIAA-CREF worked together on an eight-loan portfolio acquisition on affordable housing properties in California totaling $20 million. This latest transaction was facilitated through the utilization of CDT's growing capital sources over the past few years and the resulting working relationships that have been created. Long-term debt funding by CDT can be used for immediate transactions, such as Myrtle Terraces, forward commitments, and loan portfolio acquisitions.
Myrtle Terraces is a newly constructed community project consisting of one three-story, elevator building, with 36 one-bedroom units and 48 two-bedroom units. The majority of the units are affordable based on LIHTC criteria. Each unit is equipped with energy-efficient appliances and lighting, hardwood-style floor finishes, and included utilities. Community amenities include a large dining area and community room, a library, a computer center, a fitness center, a game room, a wellness center, an on-site laundry, secure building access and on-site parking.
"At CDT, we work with each of our individual capital sources to meet their specific needs, which helps us to deliver the best price and execution for our borrowers." said Christopher Blair, Senior Vice President of Finance at CDT. "We were pleased to work with TIAA-CREF and the borrower, the Beverly J. Searles Foundation, in executing this mission-oriented transaction in a short time frame."
As part of TIAA-CREF's General Account, the Social Impact Investment Portfolio directs capital to quality investment opportunities that create measurable social outcomes, while also providing competitive returns. As a CDFI and private REIT with a social impact mission, CDT operates as a double bottom line organization. We utilize creative financial solutions with institutional partners to provide debt and equity capital to underserved real estate markets; all while seeking attractive returns for shareholders. TIAA-CREF's goal of bettering communities aligns with CDT's mission and has led to our growing alliance.
"We are excited to continue our relationship with TIAA-CREF as a lending partner," said Joseph F. Reilly, president and CEO of CDT. "We share their understanding that investments in affordable housing truly help communities and transform the lives of their residents. By leveraging each other's unique capabilities, we are able to lend to a diverse portfolio of affordable housing and thereby realize our shared vision."
"TIAA-CREF is proud to support CDT in financing affordable senior housing in Gainesville," said Stephen Lee, senior associate for impact investing within TIAA-CREF's Responsible Investment team. "The investment is a clear fit with the goals of our Social Impact Investment Portfolio and our values as an organization in serving our communities."
As part of TIAA-CREF's General Account, the Social Impact Investment Portfolio directs capital to quality investment opportunities that create measurable social outcomes and provides competitive yields. As of the end of 2014, this portfolio has made $792 million in total investments and commitments across three investment themes that benefit low- to moderate-income communities globally: affordable housing, financial inclusion and community and economic development.
The property, Myrtle Terraces, is named after Myrtle Figueras, a retired teacher, former mayor, and current City Council member. Her significant contributions to the Gainesville community and support of this project make her an ideal namesake. The construction lender is Sterling Bank, the Beverly J. Searles Foundation will provide onsite social services, and Brenau University will provide volunteer health care students to assist senior residents.
"I honestly feel like I have a "life" again. I have a beautiful new apartment and I have made so many new friends," said Mary Helen, Myrtle Terraces resident since January 2015. "I really enjoy participating in the activities they offer. Mo Mo, my 4 legged companion and I feel so blessed to have found Myrtle Terraces and want this to be our forever home."
The Community Development Trust (CDT) is a national lender and investor in affordable housing. Working with local, regional, and national partners, CDT makes long-term equity investments and originates and acquires long-term mortgages. In its sixteen years, CDT has invested over $1.1 billion in debt and equity capital to properties in 42 states and regions -- helping to preserve and create nearly 37,000 units of affordable housing. CDT is a private real estate investment trust (REIT), a certified Community Development Financial Institution (CDFI), an approved Fannie Mae affordable housing lender, and a member of the Federal Home Loan Bank of New York (FHLBNY).
About TIAA-CREF (www.tiaa-cref.org) is a national financial services organization with $869 billion in assets under management (as of 6/30/2015) and is the leading provider of retirement services in the academic, research, medical and cultural fields.
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The TIAA-CREF Social Impact Investment Portfolio is not funded through any investment product nor does it contribute to the performance of any investment product. The sole funding source for the investments in the SIIP are assets in the TIAA General Account. The TIAA General Account is an insurance company account and does not present an investment return, and is not available to investors.