Kansas City, KS– July 28, 2021 – Berkadia announced today that it structured a $10.06 million forward commitment for the permanent financing of Davidson’s Landing, an affordable housing development in Kansas City, Kansas. Managing Director Heather Olson of Berkadia Affordable Housing secured the permanent financing in partnership with Fannie Mae under their Tax-Exempt Bond Forward Commitment program. The deal closed on July 22.
The Fannie Mae forward commitment features a 30-month forward commitment to complete the development and stabilize the property and locks in a permanent interest rate of 3.22 percent for 17 years after conversion.
“This transaction reflects the complex layers of financing needed to provide affordable housing in 2021. Our partners with UMB (Construction Lender), Hunt Capital (LIHTC Equity Provider), Kansas Development Finance Authority (Tax-Exempt Bond Issuer), Stifel Nicolaus (Bond Underwriter), along with subordinate debt from LISC and CDT, and grant funds from Housing Trust Fund, provided our clients the capital needed to build this affordable community,” said Olson. “I am proud to be a part of a team that recognizes the dire need for more affordable housing in the U.S. and the tenacity of our development partners to do whatever is necessary to provide for more housing. I am thankful that our clients, Hughes Development, Tartan Residential and BCCM Construction, chose Berkadia as part of their team to see Davidson’s Landing to a successful closing.”
“Kansas has a need for over 44,000 more affordable housing units. Much of this is centered in the more concentrated areas such as Kansas City, Kansas,” said Robert Hughes, President of Hughes Development Company. “Our development team is excited to be working with this team of funding partners. Our intent is to create a product that is replicable and sustainable.”
Located at 651 N 65th Street, Davidson’s Landing is a proposed 115-unit, energy-efficient, Affordable Housing Development, including two- and three-bedroom garden-style apartments. The estimated development cost is $23 million. The units will be leased to working households, with rents ranging between $875 – $975 per month. Property completion is anticipated by late 2023.