Sacramento, Calif. - August 14, 2020 - LDK Ventures and USA Properties Fund have closed on the financing and acquisition of the site for the A.J. residential project in the Railyards. Construction is set to begin in August on the mixed-use residential project that will offer 345 residential rental units, 69 of which will be affordable units, and 5,000 square feet of ground-floor retail. The A.J. is the first project at the Railyards to begin construction and is set for completion by Winter 2022.
"From the start, the A.J. has been integral in our vision for the Railyards," said Denton Kelley, Managing Principal of Downtown Railyard Venture, the master developer of the Railyards. "There has been a voiced need for multi-family housing that has modern amenities, is affordable, and is proximate to Downtown Sacramento. The A.J. fills that void."
Modern Amenities for An Urban Lifestyle
The A.J. will offer a mix of studio, one-bedroom, and two-bedroom units that have been thoughtfully designed to fit an urban lifestyle. Named in honor of A.J. Stevens, who was deemed the father of innovation at the Sacramento Railyards in the late 1800s, the project's fresh design pays subtle homage to its roots while embracing modern design cues. All apartments will achieve Build It Green gold standard for energy efficiency and include well-appointed finishes, plenty of natural light, and built-in cabinetry.
Residents will also enjoy amenities including a fitness center, pool and spa, dog wash, and a rooftop sky lounge with outdoor grills and firetables.
Unbeatable Location in Downtown Sacramento
When completed, the A.J. will span 2.89 acres on the southeast corner of 6th Street and Railyards Boulevard. It will offer immediate light rail and bus access, an abundance of parking, and more than 5,000 square feet of ground floor retail with a mix of neighborhood-serving tenants.
"Not only does this project add to our supply of badly needed affordable housing, it is hugely symbolic as the first housing ever built in the downtown Railyard, which has sat idle for far too long," said Mayor Darrell Steinberg. "The Railyards is on its way to becoming an extension of downtown with housing, stores, offices and Major League Soccer. Despite the pandemic, our momentum as a city continues."
The A.J. is also within walking distance of other planned developments at the Railyards, including a Major League Soccer stadium, Kaiser Medical Campus, and the Central Shops District.
Key Local and Governmental Partnerships Further Progress
The A.J. at the Railyards is a partnership between LDK Ventures, the managing member of Downtown Railyard Venture, and USA Properties Fund, Inc. Significant assistance was provided by the City of Sacramento, the California Department of Housing and Community Development and Sacramento Housing and Redevelopment Agency to permit and structure the financing for the $130 million residential project.
"The A.J. shows what is possible with private-public partnerships, and how working together we can help meet the housing needs of residents at a range of income levels," said Geoff Brown, President of USA Properties Fund. "We're proud to be part of such a forward-looking project, the first of many that will transform the historic Railyards into a vibrant district."
As a mixed income project, with 20% of the units reserved for tenants with an income at or below 50% of the area median income, the project qualified for a tax-exempt bond allocation. This competitive allocation of $85 million was awarded in December 2019. With the aid of this bond allocation, the development team of USA Properties and LDK Ventures was able to secure financing through Citi Bank Community Capital. This financing, along with the Opportunity Zone status of the Railyards, helped make it feasible to raise the accompanying equity and initiate construction of this critical project for downtown Sacramento and the Railyards redevelopment.