Two affordable housing properties in L.A. secure $5.5M in financing

LOS ANGELES, Feb. 20, 2024 – JLL Capital Markets announced today that it has arranged the $5.5 million permanent, non-LIHTC Forward financing for Alvarado Apartments and Temple Apartments, two affordable housing communities targeting extremely low-income residents and individuals experiencing homelessness in Los Angeles, California.

JLL worked on behalf of the borrower, Brilliant Corners, to secure the 15-year loan through Freddie Mac Multifamily. The loan will be serviced by JLL Real Estate Capital, LLC, a Freddie Mac Optigo℠ lender.

The 24-unit Alvarado Apartments is located at 916 N. Alvarado St., and the 42-unit Temple Apartments sits at 2812 W. Temple St. The sites are intersected by I-101 and are 1.1 miles apart from each other. Floorplans include studios, one- and two-bedroom units.

Of the 66 total units, 25 units will be reserved for chronically homeless seniors, 39 units will be at 30% AMI, and two units will be reserved for full-time on-site building managers. 59 of the units will receive Housing Assistance Payments (HAP)/Project Based Vouchers (PBV) for residents earning no greater than 30% of AMI for a 20-year term provided through the Housing Authority of the City of Los Angeles (“HACLA”).

The JLL Capital Markets Debt Advisory team was led by Senior Director Anson Snyder.

“Alvarado / Temple is a ‘Project Homekey’ development targeting public investment to assist those persons experiencing chronic homelessness. Brilliant Corners is an exceptional developer, owner, and operator that offers a home with comprehensive resident services. This property will serve many Angelenos over many years. JLL is proud to participate in impactful communities.”

“Freddie Mac’s Non-LIHTC Forward financing helps preserve and create affordable housing, advancing our mission and making home possible for individuals and families," said Peter Lillestolen, Vice President, Production and Sales, Targeted Affordable Housing at Freddie Mac Multifamily. "We are proud to offer this flexible transaction structuring that provides certainty of execution at lower costs to the borrower. In a high interest rate environment, this makes a significant impact, allowing borrowers to take interest rate risk off the table prior to construction completion."

JLL delivers multi-housing investors a full range of solutions through one diverse, integrated platform. The division employs approximately 400 professionals who provide comprehensive investment sales and disposition services with access to thousands of domestic and foreign investors. JLL is also one of the nation’s largest affordable and conventional multi-housing and seniors housing lenders with comprehensive loan underwriting, asset management and loan servicing capabilities. Agency/GSE lending and loan servicing are performed by JLL Real Estate Capital, LLC, a wholly owned indirect subsidiary of Jones Lang LaSalle Incorporated. Loans made or arranged in California are pursuant to a California Financing Law license.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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A 501(c)3 nonprofit founded in 2004, Brilliant Corners (BC) provides innovative supportive housing for people who need it. BC develops, owns, and manages community-based supportive housing, and has provide tenancy support to over 8,000 people experiencing or at risk of homelessness across California, including those experiencing chronic homelessness, youth or family homelessness, and those diverted or transitioning from institutionalization including incarceration.

BC’s multifamily department is led by Vanessa Luna, who was hired in 2020 to oversee the expansion of PHS multifamily development. Ms. Luna 17 years of experience in supportive housing development.