It's not often you hear about affordable housing these days, but U.S. Bank and Everwood Development said Monday they have closed on a $16.3 million financing package for the Creeks Run Townhomes in Chaska.
The 40-unit complex, located near the intersection of Yellow Brick Road and Crosstown Boulevard, is currently under construction, with a completion date set for July 2014. The complex is slated for working-class families.
"This development will bring much needed workforce housing to the Twin Cities community,” said Kyle Hansen, executive vice president of U.S. Bank Community Lending Division, in a statement. “We are committed to seeking out and financing affordable housing developments here in our headquarter’s state, and across the country.”
Minneapolis-based U.S. Bank’s commitment includes nearly $8.5 million of Low-Income Housing Tax Credit (LIHTC) equity through its community development subsidiary and a first mortgage. U.S. Bank said it is also serving as the project’s construction lender, providing $7 million of debt to bridge the LIHTC equity during construction. The tax credits allow the housing units to be rented at below-market, affordable rates.
“U.S. Bank provides a seamless debt and equity execution for Creeks Run,” said David Dye of Everwood Development.
While St. Paul-baed Everwood Development was founded in 2010, the firm's team collectively has 36 years of development experience with more than 55 commercial real estate projects worth a total of $600 million in assets. Projects have ranged from new construction of mixed-use multi-family housing to the renovation and preservation of historical buildings.
Janet Moore covers commercial real estate for the Star Tribune.