R4 Capital Provided over $60 Million in Equity and Debt for Affordable Housing Preservation in Los Angeles


R4 Capital, a national affordable housing tax-credit syndicator and asset

manager, and R4 Capital Funding (R4CF), its affiliated mortgage lending

platform, celebrated today’s ribbon cutting ceremony for Verdes del Oriente

(Verdes), a 113-unit subsidized garden apartment complex in the San Pedro

neighborhood of Los Angeles, California. R4 Capital and R4CF jointly arranged

$17.3 million of LIHTC equity investment and $43 million of tax-exempt

financing for Orbach Affordable Housing Solutions (OAHS) to acquire, renovate

and preserve the low-income multifamily housing.

Verdes, originally constructed in 1976, operates as a family-oriented

community proximate to the Port of Los Angeles, the world’s busiest port. OAHS

spent an estimated $82,000 per unit to provide tenants with functionally new

apartment interiors and modernized operating systems. The Verdes leasing

office was remodeled to build a community center for expanded afterschool

programs and to provide adult continuing education classes.

“Orbach is proud to invest in affordable housing in the Los Angeles area. With

the purchase of Verdes, we can use our resources and expertise to help lower

income families in an area that is often listed as one of the most expensive

to live in the country,” notes Jay Reinhard, President of OAHS. “By working

with R4’s tax credit equity and bond programs in tandem, we raised tax credit

equity and mortgage capital through a single structuring and approval process.

OAHS appreciated the efficiency of this financing approach which allowed our

team to focus on developing the property and rebuilding the community.”

To raise mortgage capital for Verdes, R4CF worked in partnership with

California regional banks with whom it has financed over $65 million in

mortgages on affordable housing properties in Southern California. According

to James Spound, President of R4 Capital Funding, “A goal of this partnership

is to facilitate innovative affordable housing investment opportunities for

area banks with a vested interest in improving housing opportunities within

their own communities.”

Paul Connolly, Executive Vice President at R4, added, “Transactions like

Verdes distinguish R4 Capital within the affordable housing finance industry

for its ability to provide true one-stop-shop equity and debt solutions that

help developers execute transactions in a timely and cost-effective manner.”