Acquisition

Acquisition Loans

To purchase land and buildings planned for future development, preservation of affordability, or other redevelopment/reuse activities, for both residential and commercial development

Oak Arbor Avenue

Case Study

Avenue CDC | Oak Arbor Townhomes

Avenue CDC used a $5,415,000 acquisition from NC to purchase the 94-apartment property in Houston. Avenue CDC was already part-owner, and purchased the property outright from the other partners to maintain long-term affordability.

DETAILS
Uses To purchase land and buildings planned for future development, preservation of affordability, or other redevelopment/reuse activities, for both residential and commercial development
Loan Amount Up to $10,000,000
Loan Term

Generally up to 36 months

May be longer for significant redevelopment programs with local agencies as development partners

Interest Rate

From 6.00%, dependent on lien position, loan term, and duration and complexity of the process to move the project to construction or other start point

Payments are generally interest-only

Collateral/security

First or subordinate liens on the property being acquired

LTV 85% maximum for undeveloped land
LTV 95% maximum for operating properties

Repayment Source Construction or permanent financing, depending on project type and timeline
Fees

Application fee - $1,000
Origination fee – 1.00% to 1.50% of loan amount

Third-party reports Appraisal, Phase I/II environmental assessments, market study, capital needs assessment for operating property