Urban Atlantic, INLIVIAN Secure $84M to Build Mixed-Income Mid-Rise in Uptown Charlotte
Urban Atlantic has partnered with INLIVIAN (formerly the Charlotte Housing Authority) and its nonprofit development subsidiary Horizon Development Properties to assemble an $84-million financing structure for Trella Uptown, a 353-unit luxury mixed-income apartment community to be built at 426 N. Tryon Street in Charlotte, NC.
The public-private partnership between Urban Atlantic and Horizon Development Properties achieved two financings of a single-building structure. The non-traditional approach to securing the $84 million in construction debt, public grant and tax credit financing makes it possible to create a mixed income luxury building with market-rate apartments (70% of the units) integrated with units designated as affordable (30% of the units).
The seven-story 330,000-square-foot apartment building in the center of Charlotte’s Central Business District will include a co-working café, maker space, dog park and pet spa, resort style pool, fitness studio with yoga room, and rooftop recreation deck with grills, lawn games and pickle ball courts.
Chase provided two separate construction loans, with $50.6 million for building 247 market units and an additional $16.3 million for the construction of 106 affordable units. The development team partnered with Horizon Development Properties as the market rate component equity investor and Limited Partner and Red Stone Equity Partners as the Low-Income Housing Tax Credit (LIHTC) syndicator with Aetna, a CVS Health company, investing $16.0 million as the LIHTC equity investor. In addition, the City of Charlotte is providing $3.2 million from its Housing Trust Fund and Mecklenburg County is providing $6 million in an affordable housing grant. HDP will provide a $7.8 million construction loan. Barings provided a combined $70.1 million forward permanent loan commitment bifurcated into an affordable and market rate collateral structure.