Apartment and Acquisition Partners
Tilden Properties/setlich capital
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20 years operating apartments
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$2 billion in acquisitions
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Funding from Silicon Valley executive
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Can move fast with strong terms
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Based in San Francisco & Los Angeles
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Willing to recapitalize assets and create joint ventures
Single assets Development
A single asset corporation will purchase the building on behalf of the county, creating governmental ownership and repurpose of the building into workforce housing.
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Private developer will negotiate price and terms for the building and assign that purchase and sale agreement to the corporation
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Private developer responsible for project development and implementation
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Corporation will be a non-profit public benefit corporation to meet governmental ownership definition
Tax exempt acquisition
Management
Funding of the acquisition accomplished via tax exempt project financing.
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A long term, non-recourse financing supported solely by the cashflow generated from apartment rentals
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All debt and equity used for financing will be encapsulated in the finance structure
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Financing will cover the acquisition and related costs as well as substantial cash reserves
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Given the governmental ownership, the property would be removed from the tax rolls with the resulting funds flowing to reduce debt more rapidly
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After the acquisition debt is retired (approx. 35 years) the county will be able to use the asset as it sees fit
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LA County used a similar approach for the development of four Health and Human Services Buildings during the early 90's
Property and asset management
All future project management contracted through professionals.
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Program Administration & Asset Management
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Property Management
Urban low income apartment acquisition & management
Rehabilitation and conversion of the apartments from market rate to a mixed income workforce housing.
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Assist all counties in meeting affordable housing goals
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Project will use best efforts to target at mixed income community as follows:
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1/3 of the units at 80% of Area Median Income
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1/3 of the units at 100% of Area Median Income
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1/3 of the units at 120% of Area Median Income
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Project Critical program troubleshooting and management
Timing
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Program development and acquisitions is complex and time consuming which will require flexibility from all parties... including current owner
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Traditional private property purchase and sale timelines are too rapid for a typical governmental body