Google and Aegon Form LIHTC Investment Partnership
Stepping up its investment in the low-income housing tax credit (LIHTC) market, Internet giant, Google, is partnering with Aegon USA Realty Advisors, LLC to manage an LIHTC fund called Garnet LIHTC Fund XXV, LLC. The first tranche of the fund closed January 28, 2011, and includes a $28 million investment in two low-income housing developments in Minneapolis, Minnesota (Riverside Plaza Apartments) and Santa Fe, New Mexico (Villa Alegre Senior Apartments). The fund will provide a major source of funding for the rehabilitation and construction of 1,353 units for families and senior citizens.
According to Christop Gabler, Aegon senior vice-president, the Riverside Plaza Apartments development will include the rehabilitation of nine multi-story residential buildings with 1,303 units for families, which are home for approximately 4,500 residents. Riverside Plaza includes its own post office, grocery store, daycare facilities, resident services resource center, and the African Women’s Resource Center. It also includes a large, onsite education facility, including services for early child care, a K-8 charter school, computer education labs, and adult literacy programs.
Vila Alegre Senior Apartments will include the new construction of 25 one-story buildings that will create 50 units for seniors. The project will also obtain at least LEED Gold status in which the units are expected to use 50 percent less energy than the energy of a standard home, and will include ground source geothermal heating and cooling, and solar panels for electricity generation.
The partnership isn’t Google’s first foray into the LIHTC arena. In 2010, it went to into two partnerships—one with Union Bank and the other with U.S. Bancorp (see Insider Online Exclusives, 6/15/2010 and 9/14/2010).