GREENWICH, CONN. — Starwood Property Trust Inc., an affiliate of Greenwich-based Starwood Capital Group, has signed a definitive agreement to acquire a 28-property affordable housing portfolio located throughout Florida for approximately $600 million. The portfolio includes 6,185 units predominately located in Orlando, with smaller concentrations in West Palm Beach, Tampa and Miami. At the time of sale, the portfolio was 99 percent occupied. The transaction is expected to close in phases due to timing of regulatory approvals and the assumption of in-place financing. The first phase, which includes 1,740 units, closed in December. Starwood Property Trust expects to complete the remaining phases by the end of the second quarter. Upon closing, the company’s portfolio will include more than 15,100 affordable housing units, located predominately in Florida.
LAFAYETTE, IND. — Pillar Financial, a division of SunTrust Bank, has originated a $6 million Fannie Mae loan for the refinancing of Lahr Apartments in Lafayette. Constructed in 1831, the historic property originally served as the Lahr Hotel before being transformed into affordable housing units in 1998. The property also features first-floor retail space. Joe Markech of Pillar originated the 10-year loan, which features a 30-year amortization schedule. Pillar sourced the transaction through Mike Dury of PR Mortgage, a Pillar correspondent.
UTICA, N.Y. — KeyBank Community Development Lending & Investment has provided an $8.2 million credit enhancement for the construction of Roosevelt Residences in Utica. Being developed by Norstar Development USA and the Municipal Housing Authority of the City of Utica, the property will feature 50 units, with eight units reserved for homeless veterans and the chronically homeless. Additionally, 25 units will be contracted by a project-based Section 8 Housing Assistance Program through the Municipal Housing Authority of the City of Utica. John Berry and Joe Eicheldinger of KeyBank’s lending group arranged the construction financing. The project is being funded in partnership with the City of Utica, the State of New York Mortgage Agency, Housing Financing Agency, the Office of Temporary and Disability Assistance’s Homeless Housing and Assistance Program and RBC Tax Credit Equity.
RAMSEY, MINN. — Dougherty Mortgage LLC has provided a $4.8 million HUD 221(d)(4) loan for the construction of Greenway Terrace in Ramsey, about 30 miles north of Minneapolis. All 54 of the property’s units will be restricted to individuals and families earning 50 percent or less of the area median income. The project will feature six one-bedroom units, 21 two-bedroom units, 21 three-bedroom units and six four-bedroom units. Dougherty arranged the 40-year loan on behalf of the borrower, Ramsey Station Apartments Limited Partnership. In addition to the HUD-insured first mortgage, the borrower obtained capital via the Low-Income Housing Tax Credit (LIHTC) program as well as funds from Anoka County and the Metropolitan Council.
MILWAUKEE — Associated Bank has provided $20.6 million in total equity and $11.5 million in construction and bridge financing for the development of three affordable housing projects in Wisconsin spanning 130 units. Built in 1912, the former Washington School in Sheboygan, Wis., is on the National Register of Historic Places. The building will be converted into a two-story apartment community with 42 units known as Washington School Apartments. A three-story historic school building located at 2779 N. 5th St. in Milwaukee will be transformed into Fifth Street Senior Apartments. The property will include 48 units for seniors age 55 and above. Washington Park Townhomes will involve the new construction of 40 two-story, townhouse-style apartments in Milwaukee. Bryan Schreiter of Associated Bank originated the loans on behalf of the borrower, Gorman & Co. Inc. The developments used Low Income Housing Tax Credit (LIHTC) equity as part of the financing package, requiring that apartments be available at below-market rents for people earning no more than 60 percent of the area median income. Two of the projects are historic building renovations that qualified for federal and state historic preservation tax credits to cover rehabilitation costs. Associated Bank partnered with Boston Capital to provide …
Dougherty Arranges $14.7M HUD Acquisition Loan for Affordable Housing Project in St. Paul, Minnesota
ST. PAUL, MINN. — Dougherty Mortgage LLC has arranged a $14.7 million HUD 221 (d)(4) loan for the acquisition of an office building in St. Paul. The borrower, Pioneer Apartments LLLP, plans to convert the existing building into a 144-unit affordable housing property called Pioneer Apartments. All units will be restricted to residents earning 60 percent or less of the area median income. The property was originally constructed in 1954 and most recently served as the headquarters for the St. Paul Pioneer Press. In addition to the HUD-insured first mortgage, the borrower will receive equity from the sale of low-income housing tax credits, federal historic tax credits, state historic tax credits funded in the form of a loan from Preservation Alliance Minnesota and funds from the Metropolitan Council. The project also involved tax-exempt bonds underwritten by Dougherty & Co. LLC, an affiliate of Dougherty Mortgage. Completion of the project is slated for early 2019.
DUBUQUE, IOWA — SVN has brokered the sale of Hillcrest Apartments in Dubuque for $5 million. The 108-unit affordable housing property is located at 3290 Hillcrest Road in eastern Iowa. Reid Bennett and Cody Doran of SVN | Chicago Commercial represented the undisclosed seller in the transaction. The buyer was an affordable housing developer and owner.
CHICAGO — Kiser Group and Affordable Housing Investment Brokerage Inc. (AHIB) have negotiated the sale of 167 affordable housing units in Chicago for $11.2 million. Lyndale Place is a 67-unit property located at 2575 W. Lyndale St. in the Logan Square neighborhood. Renaissance West is a 111-unit building located at 2517 W. Fullerton Ave. in the Bucktown neighborhood. The Habitat Co. purchased the portfolio from Renaissance Cos. Michael D’Agnostino of Kiser Group and Kyle Shoemaker of AHIB brokered the transaction.
CINCINNATI — KeyBank Community Development Lending & Investment has provided $8.3 million in acquisition financing for Morgan Apartments in Cincinnati. The 48-unit affordable housing property features six vacant buildings. All units are reserved for families earning between 30 and 60 percent of the area median income. Kelly Frank of KeyBank originated the financing on behalf of the borrowers, The Model Group Inc. and Over-the-Rhine Community Housing Inc (OTRH). The Morgan Apartments will offer early childhood education, before and after school care, credit counseling, financial literacy programs, education assistance, job training and placement assistance through OTRH. The Ohio Capital Corporation for Housing provided the low-income housing tax credits, federal historic tax credit and state historic tax credit equity for the project.
ROCKY MOUNT AND ZEBULON, N.C. — The Woda Group Inc. has broken ground on two multifamily communities in North Carolina: Ravenwood Crossing in Rocky Mount and Shepard Greene in Zebulon. The $9 million Rocky Mount development will include 80 affordable townhomes for seniors, families and single renters. Financing was provided through low income housing tax credits (LIHTC), loans allocated by the North Carolina Housing Finance Agency, the City of Rocky Mount, Community Affordable Housing Equity Corp. (CAHEC) and the Bank of Tennessee. Shepard Greene, a $6.4 million community in Zebulon, will include 50 affordable homes for seniors age 55 and over. Bank of America is providing equity for the project and a USDA Rural Development 538 loan will be implemented by Bellwether Enterprise. The project is also utilizing LIHTC and other state loans allocated by the North Carolina Housing Finance Agency.