Affordable MN Property Lands $6M Construction Loan

A rendering of Thomas Avenue Flats

Dougherty Mortgage’s Minneapolis office has closed a $5.6 million HUD 221(d)(4) loan for the construction of Thomas Avenue Flats in St. Paul, Minn. In addition to the HUD-insured first mortgage, the 51-unit affordable housing property will be built using equity from the sale of Low-Income Housing Tax Credits and funds from the St. Paul Housing and Redevelopment Authority. The loan amortizes on a 40-year schedule. According to Yardi Matrix data, MWF Properties is the owner of the planned asset.

Located at 1500 W. Thomas Ave., the community will be close to Hamline Park and less than nine miles from both downtown St. Paul and downtown Minneapolis, where late last year Dougherty closed a $34.1 million HUD loan for a planned affordable housing development.

The four-story property is set to feature a fitness center, covered parking and four laundry facilities. All units will be restricted to residents earning 60 percent or less of the area’s median income, with an additional seven apartments designated as HOME units.

According to the Monitor St. Paul, the residential property will be built on a vacant parcel that was once part of the Great Northern—and later Samaritan Hospital—complex. MWF Properties bought the site back in 2015 and later announced it would invest $13.6 million in the project. Construction of Thomas Avenue Flats is expected to start in June, with completion anticipated for the spring of 2019.

Image courtesy of Dougherty Mortgage