Dominium has secured $46.6 million in financing to acquire two affordable housing developments, with Merchants Bank (parent company of Merchants Capital) providing the acquisition funding.
The Villa Hermosa development in Albuquerque, N.M., a 288-unit multifamily property, received permanent and mezzanine loans totaling $28.3 million. Similarly, Cholla Ranch Apartments in Buckeye, Ariz., a 180-unit multifamily property received over $18.3 million in financing.
Both properties are currently affordable and plans for rehabilitation and re-syndication of tax credits are underway. A tenant-in-place rehabilitation project worth $13 million is expected to begin at Villa Hermosa in spring of 2025 after the re-syndication process is completed. Upgrades will be made to unit interiors as well as common area amenities while maintaining affordability for all units at or below 60% area median income (AMI).
Cholla Ranch Apartments will also undergo a tenant-in-place rehabilitation project worth $7 million starting early next year along with tax credit re-syndication by Dominium.
This recent acquisition adds two more apartment communities to Dominium’s portfolio located across Arizona and New Mexico.
