Ginosko Development Company (GDC), a Michigan-based minority and woman-owned development firm ,and L+M Development Partners (L+M), a New York-based full-service real estate development firm, today announce that they have acquired a nine-property affordable housing portfolio in Michigan. The 1,640-unit portfolio comprises 115 buildings across the state. Over half of all units are for seniors, while seven of the properties have HUD Section 8 Contracts and two buildings are restricted to households at or below 60% Area Median Income (AMI). GDC and L+M will preserve affordability at all properties while modernizing the buildings and units by improving both interior and exterior features.
“Here you had a minority development company with the creativity and know-how to structure this portfolio located in its own “backyard”, coupled with the additional financial wherewithal and collective genius of L+M, CPC, and Merchants; I truly do believe these deals reflect the heart of economic and collaborative equality. Everyone has been an absolute pleasure to work with,” said Amin Irving, Founder, President, and CEO of GDC.
“At L+M, our mission is centered around ensuring communities have access to safe, high quality, affordable housing and we’re proud to extend this commitment to our Michigan portfolio,” said Jeffrey Moelis, Managing Director at L+M Development Partners. “Preserving our nation’s affordable housing stock has never been more important and as we work to rehabilitate each site, residents will not only receive improved living environments but will also be assured that their homes will remain affordable. We thank our financing partners for helping us advance this plan and look forward to working alongside Ginosko to breathe new life into each of these nine properties.”
“As a mission-based lender, our goal is always to work with high quality sponsors who are focused on preserving and expanding access to affordable housing. Ginosko, L+M, and this portfolio aligned seamlessly with both of these goals. We’re proud that our unique ability to package a Freddie Mac first mortgage with CPC subordinate debt will allow Ginosko and L+M to move forward with their plans to revitalize these properties and improve housing quality and living conditions for their tenants,” said John Cannon, President, CPC Mortgage Company.
“We are proud to work with L+M Development Partners and Ginosko Development Corporation as one of their financing partners and support their efforts to revitalize living environments and community space for this affordable housing portfolio, comprised of 1,640 units,” said Michael Milazzo, Senior Vice President, Originations at Merchants Capital. “Preserving affordable housing is a notable pursuit, especially when our nation is facing an affordability crisis. We are honored to finance a part of the solution.”
GDC and L+M look forward to rehabilitating each community and improving living environments for residents. Rehabilitation plans include renovating kitchens and baths, modernizing amenity spaces, upgrading mechanicals, and improving the properties’ façades, landscaping, and curb appeal, depending on the needs at each property.
GDC is one of the awardees of Citi’s Emerging Manager Fund, an initiative aimed at preserving affordable housing while expanding opportunities for diverse developers. Four of the properties — Art Center, Charring Square, Lincolnshire Village, and Phoenix Place — were acquired using equity through the Citi Emerging Managers Fund and conventional debt through the Community Preservation Corporation, Freddie Mac, and Merchants Bank. The other five properties — Birch Park, Coventry Woods, Lawrence Park, Lexington Village, and Greenhouse — were acquired using bridge financing from the Community Preservation Corporation, Freddie Mac, and Merchants Bank, and will eventually be syndicated using 4% Low Income Housing Tax Credits through a tax-exempt bond issuance provided by the Michigan State Housing Development Authority.
Details on each property can be found below.
Art Center |5351 Chrysler Drive, Detroit, MI 48202
Unit mix: 40 two-bedrooms and 20 three-bedrooms
Birch Park |300 Birch Park Drive, Saginaw, MI 48601
Unit mix: 4 one-bedrooms, 84 two-bedrooms, 32 three-bedrooms
Charring Square | 6123 Greenwycke Lane, Monroe, MI 48161
Unit mix: 56 one-bedrooms, 86 two-bedrooms, 58 three-bedrooms
Coventry Woods | 3550 Remembrance Road NW, Walker, MI
Unit mix: 100 one-bedrooms
*All units are for seniors
Greenhouse | 17300 Southfield Freeway, Detroit, MI 48235
Unit mix: 209 one-bedrooms
*All units are for seniors
Lawrence Park | 7000 East 10 Mile Road, Center Line, MI 48105
Unit mix: 120 one-bedrooms, 108 two-bedrooms, 24 three-bedrooms
*126 units are for seniors
Lexington Village | 1310 Pallister Street, Detroit, MI 48202
Unit mix: 207 one-bedrooms, 124 two-bedrooms, 20 three-bedrooms
*200 units are for seniors
Lincolnshire | 44908 Trail Court, Canton, MI 48187
Unit mix: 24 one-bedrooms, 103 two-bedrooms, 20 three-bedrooms
Phoenix Place | 47251 Woodward Avenue, Pontiac, MI 48342
Unit mix: 201 one-bedrooms
*All units are for seniors
