WASHINGTON, D.C. - November 30, 2011
Wells Fargo & Company (NYSE: WFC) today announced the closing of a $41.4 million transaction that will provide a permanent loan to finance the substantial rehabilitation of Mayfair Mansions III, a registered historic affordable housing complex in Washington, D.C.
Wells Fargo provided the borrower, MM Property LLC, with equity investments in Low-Income Housing Tax Credits (LIHTCs) and Federal Historic Tax Credits (FHTCs), Letters of Credit for tax-exempt bonds issued by the District of Columbia Housing Finance Agency, and a Freddie Mac Forward Commitment for the credit enhancement of long-term tax-exempt and market bonds.
“Wells Fargo is committed to investing in our communities,” said Dan Metz, senior vice president and regional equity manager for Community, Lending and Investment at Wells Fargo. “As one of the few banks that have the resources to meet all the financial needs this transaction required, we are honored to help MM Property preserve and create affordable housing and sustain this historic property in the district.”
Located on Jay Street N.E. in D.C., Mayfair Mansions was originally completed in 1946 and has since been placed on the District of Columbia Register of Historic Sites and the National Register of Historic Places. Mayfair Mansions has historical significance as the first privately developed multi-family housing property to be insured by the Federal Housing Administration for occupancy by African American residents. It was conceived and designed by an African American architect, Albert I. Cassell, and developed by two African American developers, Cassell and his partner, Elder Lightfoot Solomon Michaux.
The current financing is supporting Phase III of Mayfair Mansions Apartments, which will total 160 units. After renovation, the property will house residents earning 60 percent or less of the area median income.
Wells Fargo invested $9.4 million in LIHTCs and $4.1 million in FHTCs. In addition, two letters of credit totaling $11.2 million were provided to credit enhance tax-exempt and market-rate bonds issued by the District of Columbia Housing Finance Agency (DCHFA), $8.4 million of which was under the New Issue Bond Program. Wells Fargo also made a $5.7 million direct purchase of DCHFA-issued bonds to meet a required 50 percent qualified cost test and delivered credit enhancements for $11 million long-term fixed-rate tax-exempt and market-rate bonds.
A groundbreaking for Mayfair Mansions Apartments will take place Wednesday, November 30, at 3:00 p.m. (rain or shine) at 3753 Jay Street NE, Washington, D.C. 20019.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.3 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com and wachovia.com), and other distribution channels across North America and internationally. With more than 270,000 team members, Wells Fargo serves one in three households in America. Wells Fargo & Company was ranked No. 23 on Fortune’s 2011 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.
Wells Fargo provides nationwide commercial real estate banking, capital markets, and advisory services in a single platform that includes lending, syndications, debt placement, equity raising and underwriting, mergers and acquisitions and servicing. Wells Fargo was ranked as the nation’s largest commercial real estate lender and servicer and top multifamily lender by the Mortgage Bankers Association for 2010; was named the largest issuer of preferred stock REIT equity and the largest domestic REIT and real estate bookrunner by Thompson Financial in 2010; and was named the most active brokerage of large commercial real estate sales in 2010 by Real Estate Alert. For more about the Wells Fargo commercial real estate platform visit: www.wellsfargo.com/realestate.
About MM Property, Inc.
MM Property LLC, a partnership between affiliates of Forrester Realty Capital LLC and Dantes Partners LLC, is the owner and developer of Mayfair Mansions III. Architectural services for the project are being provided by a joint venture between Wiencek Associates and MWB Architects. John J Christie and Associates is providing engineering services to the development team, and the general contractor is Forrester Construction Company.