D2 Capital Advisors Arranges $18,200,000 Construction Financing for Affordable Housing in Aurora, IL

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Jun 21, 2022, 06:12 ET

AURORA, Ill., June 21, 2022 /PRNewswire/ -- Fox Valley Apartments LP, a joint venture that includes General Partner Visionary Ventures, NFP has secured $18,200,000 in construction financing for Fox Valley Apartments: a 47-unit affordable housing redevelopment located in Aurora, IL.

The financing was arranged by D2 Capital Advisors' Jack Cortese and David Frankel.

The affordable workforce housing redevelopment encompasses the adaptive reuse of two vacant historic school sites in the City of Aurora: the former Mary A. Todd School and Lincoln Elementary School

The Todd school is located at 100 Oak Avenue within a Qualified Opportunity Zone and will include 11 new housing units and a health clinic for low-income families. The Lincoln school is located at 641 S. Lake St. and will include 14 new housing units. Additionally, a new two-story building will be constructed and result in 22 new housing units. Both schools are located within an Illinois Rivers Edge Redevelopment Zone.

Of the 47 total units, at least 30% will be for renters at 30% of area median income – the remaining units will be for renters at 60% of area median income. The project was awarded 9% Low Income Housing Tax Credits by the Illinois Housing Department Authority. The project also qualified for State and Federal Historic Tax Credits.

D2CA successfully sourced a construction lender who was able to bridge both the 9% Low Income Housing Tax Credit equity and the Historic Tax Credit equity while also providing fixed rate construction to permanent financing.

"We garnered a lot of interest for this deal and provided a one-lender solution that allowed for maximum flexibility on the exit," said Jack Cortese, Vice President of D2CA. "We also locked in the rate at term sheet execution, which proved to be extremely valuable given the current rate environment and the time that it took all parties to get closed."

"Members of our team have worked with D2CA on prior projects, and they have delivered once again," said Shelly Tucciarelli, Managing Member of Fox Valley Apartments, LP. "We are extremely proud to bring much needed housing to the City of Aurora and we are excited to begin the construction process now that that financing has been secured."

ABOUT D2 Capital Advisors

D2 Capital Advisors is the transaction advisory division of D2 Organization that arranges and structures real estate debt and equity financing for developers and investors throughout the United States.

For more information, please visit www.d2organization.com

SOURCE D2 Capital Advisors