Walker & Dunlop Arranges $30M Financing for Avanti Hills Affordable Seniors Housing in Mesquite, Texas
Walker & Dunlop has arranged approximately $30 million in financing for Avanti Hills, an affordable seniors housing community under development in Mesquite, Texas, in the Dallas-Fort Worth metro, the firm announced.
Walker & Dunlop Financing Details
The approximately $30 million commitment was provided as low-income housing tax credit (LIHTC) equity through Walker & Dunlop Affordable Housing Equity. The equity represents roughly 38% of the project's total development cost of approximately $78.5 million. The project is also supported by tax-exempt bond financing issued through the Mesquite Housing Finance Corp. Citi Community Capital and Bank of America are the debt partners.
The transaction is a development financing rather than a property sale, and it follows a 4% LIHTC structure that combines federal tax credits, tax-exempt bonds and private-sector debt.
Avanti Hills Property Details
Avanti Hills is located at 2235 East Glen Blvd., Mesquite, TX 75181. The new-construction community will include 260 apartments for residents age 55 and older, consisting of 135 one-bedroom and 125 two-bedroom residences. The residential area totals 219,680 square feet.
All units will be reserved for households earning no more than 60% of area median income. Planned amenities include a clubhouse, fitness center, outdoor gathering areas, accessible features and resident wellness programming.
A joint venture involving KCG Development, The Javelin Group and the Mesquite Housing Finance Corp. is developing the project. The Mesquite Housing Finance Corp. serves both as the bond-issuing entity and as a member of the development partnership.
Capital Stack and Development Costs
Based on the reported budget of approximately $78.5 million, development costs work out to roughly $302,000 per unit and $357 per residential square foot. These figures reflect development costs, not sale valuations or market rents. The gap between the LIHTC equity commitment and the total budget is filled by tax-exempt bonds and institutional debt from Citi Community Capital and Bank of America.
Affordable Seniors Housing in Dallas-Fort Worth
Because Avanti Hills is new construction rather than an acquisition or rehabilitation, the project adds 260 income-restricted apartments to the Dallas-Fort Worth region's affordable seniors housing inventory. Restricting all units to households at or below 60% of area median income targets a segment generally underserved by conventional multifamily development.
The financing also illustrates the role of public-private partnerships in affordable housing, with a municipal housing finance corporation, institutional lenders and a LIHTC equity provider each contributing to the capital stack. Walker & Dunlop's services span entity-level and property-level finance and advisory across affordable, multifamily, industrial and other sectors.
Sources
Walker & Dunlop: https://www.walkerdunlop.com/news/30m-financing-for-affordable-seniors-housing-project-in-texas