Capital A, NHPF Score $75M Construction Financing

There’s still construction financing out there, if you’re able to put the puzzle pieces together.

A development team led by the NHP Foundation and Capital A Housing secured $75 million in construction financing for its East Austin development, Seabrook Square.

The project, located at 3515 Manor road, will have 204 apartments, all income-limited to those earning 60 percent or less of the area median income. Seabrook Square is the NHP Foundation’s first Austin project. The not-for-profit owns 61 properties with around 10,000 units.

The funding comes from several sources. The largest chunk is a $43.4 million construction loan from Citibank, $40 million of which is funded by a tax-exempt bond issued by the City of Austin. The remaining $3.4 million is a bridge loan from Citibank. Another $32.3 million in equity was syndicated by Boston Financial with a 4 percent, low-income housing tax credit. The Austin Housing Finance Corporation kicked in a $13.5 million loan.

Construction is set to begin this month.

In addition to the apartments, the project will have a 3,000-square-foot commercial space. Origin Studio House, a Black-owned café, and the local art incubator, Raasin in the Sun are tenants. Continuing on the local arts theme, the project will have 10 live-work studios for local artists. Around 80 of the units are aimed at families, with two-bedroom or more floor plans.Austin has one of the nation’s most active multifamily pipelines, but it has still faced an affordability crisis as people flock to the city. Further complicating the picture, lending has all but frozen for new projects, making Seabrook Square a rare exception as deal flow has slowed.