The Oaks Senior Housing Community Gets Rolling with Financing
The underwriting of $25 million in short-term bonds and the closing of a $22.1 million Freddie Mac unfunded forward loan were part of a financing structure that allows DHA Housing Solutions for North Texas (DHA) and the Volunteers of America National Services (VOANS) to develop The Oaks, a mixed-income seniors housing community in Dallas. VOANS is also the sponsor and guarantor.
Tracy Peters and Dale Giffey led the financing transaction for Lument.
“While every transaction we close at Lument is noteworthy in its own right, there are certain deals that are especially rewarding because they enrich communities by creating new high-quality housing that enhances lives across the affordability spectrum,” said Peters.
The Oaks is expected to be completed in 2023. Upon stabilization, the $22.1 million Freddie Mac loan and tax credit equity will be used to pay off a $35 million construction loan from a national bank. The financing structure also includes subordinate debt of $4.5 million from HOI Inc., the bond issuer and $750,000 in capital magnet funds from VOANS.
“Our goal is to increase the amount of essential affordable housing across the communities we serve,” said Troy Broussard, president and chief executive officer for DHA.
- ◦Financing
