Capital One Bank to Provide Funding for New Affordable Housing
Construction in New York City
Construction in New York City
NEW YORK, Sep 08, 2010 (BUSINESS WIRE) --
Capital One Bank today announced it has committed to provide a $41 million financing package toward the construction of two affordable housing buildings to be located at St. Ann's Terrace in the Bronx. The development will add 161 affordable housing units for New York City's low-to-moderate income residents.
A joint venture between the Jackson Development Group and Joy Construction Corporation, the buildings will be constructed on a nearly 40,000-square-feet vacant site located on the east side of Eagle Avenue, between East 156th and East 158th Streets in the Bronx. The 161 studio, one-bedroom, two-bedroom and three-bedroom units will be leased to qualified tenants earning between 40 percent and 60 percent of the area median income. Upon completion, the two buildings will have an above gross building area of approximately 164,000 square feet. Occupancy is expected by spring 2012.
Capital One's financing includes a $24.1 million construction period credit enhancement to the Jackson/Joy development entity in the form of a stand-by letter of credit for tax-exempt, fixed-rate bonds issued by the New York City Housing Development Corporation (HDC) under its Low-income Affordable Marketplace Program. An additional $15.3 million will be invested through the purchase of 4 percent as-of-right Low Income Housing Tax Credits generated by the development. The HDC and the NYC Department of Housing Preservation and Development will subsidize the remainder of the capitalization with subordinate loans.
"Fostering the economic well-being of local communities and their residents is a vital part of our work at Capital One Bank, and we are proud to help provide more affordable housing for hundreds of low- and moderate-income New Yorkers through the construction of these new buildings at St. Ann's," said John Habermann, Bronx Market President for Capital One Bank. "Whether it's inside our local branches or out in the community, Capital One Bank is committed to investing in the Bronx to help it prosper and grow."
The new development will fill a 3.5 acre formerly blighted lot, which was the largest remaining vacant parcel of land in the Melrose Commons neighborhood of the South Bronx. The St. Ann's Terrace development initially broke ground in March 2009 with the construction of 314 low-income units and 161 middle-income units in six buildings. Capital One purchased all of the $31 million in tax credit equity and participated in 60 percent of the debt on the low-income portion of that first phase. Ultimately, the three-block parcel of vacant land will be transformed into a 641 unit mixed-income residential community with 45,000 square feet of ground floor retail space and 300 underground attended parking spaces. The entire St. Ann's Terrace development will have an above grade gross building area of 750,000 square feet.
"Jackson Development and Joy Construction Corporation are fortunate to have such a committed lender and partner in Capital One Bank," said Eli Weiss, Director of Finance for Jackson Development Group and Joy Construction. "Together with the NYC Housing Development Corporation and the City of New York, Capital One's investment in St. Ann's Terrace will bring an additional 161 new units of much needed quality affordable housing for New Yorkers and will help advance the ongoing revitalization of the Bronx."
Capital One Bank is committed to investing in New York City through innovative partnerships and programs that focus on economic development, affordable housing, education and financial literacy. In the past year in New York, Capital One provided $340 million in specialized financing for 35 affordable housing properties containing more than 3,800 housing units. Further seeking to stabilize, strengthen and enhance low- to moderate-income neighborhoods, Capital One offers educational and skills-building opportunities for residents, centered on homeownership and personal finance skills. In 2009, Capital One conducted 23 homebuyer trainings for more than 400 New York families and helped home buyers secure $1.1 million in available subsidies.
About Capital One
Capital One Financial Corporation is a financial holding company whose subsidiaries, which include Capital One, N.A. and Capital One Bank (USA), N. A., had $117.3 billion in deposits and $197.5 billion in total assets outstanding as of June 30, 2010. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One, N.A. has approximately 1,000 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia, and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.
Capital One Bank is a registered trade name of Capital One, N.A.
SOURCE: Capital One Financial Corporation
Capital One Financial Corporation
Shelley Solheim, 917-589-6203