The Encino, CA-based multifamily real estate development and preservation firm is acquiring and rehabilitating a total of 1,909 units. Four of the properties in the portfolio are situated in cities in the Greater Cleveland metropolitan area, including Cleveland, East Cleveland, and Euclid. The fifth property in the portfolio is a development in Akron, about 40 miles southeast of the city.
The financing was provided by New York City-based Charter Municipal Mortgage Acceptance Co. and its affiliate, Related Capital Co. CharterMac provided $57.8 million of financing through the purchase of tax-exempt revenue bonds generated by the developments, while Related Capital provided $19.7 million in equity for tax credits generated by the developments.
The five properties range in size from 173 to 559 units and are mid- or high-rise apartment buildings that were originally constructed in the early 1970s. All of the rehabilitated apartments will be targeted toward residents earning 60% or less of the area median income and residency will be restricted to households aged 55 years or older.
The transaction represents the second time in the past three months that CharterMac and Related Capital have partnered with GH Capital on Ohio multifamily developments. The team's collaborations will result in the construction or rehabilitation of about 3,000 units through investments totaling over $118 million.
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