Affordable FL Community Lands $23M
Dougherty Mortgage arranged the financing for the acquisition and rehabilitation of the 336-unit Seven Palms Apartments in Punta Gorda. Dominium purchased the property from Alliant Capital.
Dougherty Mortgage’s Minneapolis office has closed a $22.7 million HUD 223(f) acquisition loan for the purchase and rehabilitation of a 336-unit affordable housing property in Punta Gorda, Fla. According to Yardi Matrix data, Dominium purchased Seven Palms Apartments from Alliant Capital for $28.6 million. The 35-year loan features a 35-year amortization schedule.
Located at 1200 Slash Pine Circle, Seven Palms Apartments provides easy access to Interstate 75 and Punta Gorda Airport. The unit mix consists of 60 one-, 152 two- and 124 three-bedroom apartments with patio or balcony, dishwasher, washers, dryers and walk-in closets. Amenities include:
- swimming pool
- tennis court
- business center
- picnic area
- fitness room
- 800 parking spaces
The borrower intends to invest $7.9 million in moderate updates to the property, which are set to include accessibility upgrades, window replacement, new lighting and signage, high-efficiency fixtures and appliances, a new key fob system and amenity improvements. The renovation project involves the issuance of tax-exempt bonds and 4 percent Low-Income Housing Tax Credits.
Developed with LIHTC and tax-exempt bonds in 2002, the community remains restricted to individuals and families earning less than 60 percent of the area’s median income. Moreover, there are 51 units set aside for individuals and households earning 33 percent of the area’s median income. As part of this transaction, all restrictions will be extended for a 15-year compliance period and a 15-year extended-use period.
Image courtesy of Yardi Matrix