Dominium Picks Up AZ, NM Apartment Communities

Dominium obtained $46.6 million in financing to acquire two affordable housing developments. Merchants Bank, the parent company of Merchants Capital, provided the acquisition financing.

Permanent and mezzanine loans totaling $28.3 million were secured for Villa Hermosa, a 288-unit multifamily development in Albuquerque, N.M. Similarly, more than $18.3 million was secured for Cholla Ranch Apartments, a 180-unit multifamily development in Buckeye, Ariz. (photo)

Both properties are affordable, with rehabilitation and re-syndication of tax credits being planned. A $13 million tenant-in-place rehabilitation is expected to begin in spring of 2025 at Villa Hermosa with the re-syndication of tax credits. There will be upgrades to unit interiors and common area amenities. One hundred percent of Villa Hermosa’s units are currently restricted to 60% area median income (AMI) and the affordability will remain in place post re-syndication.

Dominium will begin a $7 million tenant-in-place rehabilitation and tax credit re-syndication for Cholla Ranch Apartments in early 2025.