Lument Closes $48M Fannie Mae Loan

Gorman & Co. is teaming up with a Colorado resort town on this affordable, net zero project.

Alta Verde II. Rendering courtesy of Norris Design

Lument has closed on a $47.5 million Fannie Mae multifamily housing loan to fund construction of a 172-unit income-restricted apartment property in Colorado that is being developed by Gorman & Co. and the town of Breckenridge to provide affordable housing for workers in the resort community.

Alta Verde II, is the second phase in the net zero development that is part of the town’s five-year blueprint approved earlier this year to leverage a $50 million investment into more than $300 million spent on local workforce housing. Development is being supported through public-private partnerships, collaborations, private investments, grants and other innovative financing strategies. Alta Verde I has 80 units with one-, two- and three-bedroom layouts and is slated for delivery in late November. Gorman & Co. and the town also collaborated on the first phase of Alta Verde, a 9 percent low-income housing tax credit community.

The Fannie Mae loan for Alta Verde II is structured as a 30-month forward commitment and features a low, fixed-interest rate. After the 30-month period, the loan will convert to a 10-year permanent loan that will fund the construction. Tim Hoppin, director of affordable housing at Lument, led the transaction for the firm.

Hoppin said in a prepared statement the loan will serve as permanent financing for a community that is at the forefront of addressing housing solutions for workers in a high-cost mountain resort community along with green energy efficiency. He described the sponsor, Gorman & Co., as a repeat Fannie Mae borrower with extensive experience developing affordable and workforce housing. Lument previously provided $22.5 million in Fannie Mae financing to Gorman & Co. for the development of Sunlight Crossing Apartments, a 90-unit workforce housing community in Steamboat Springs, Colo.

Project Details

The developer broke ground on Alta Verde II this fall. The property will have 172 units in four buildings with a total of 130,200 square feet and feature studio, one-, two- and three-bedroom layouts. Of the units, 86, or 50 percent, will be income restricted at 80 percent of area median income and 40 percent will be restricted at 120 AMI. The remaining 10 percent will not have an AMI restriction. All units will have a local workforce deed restriction at conversion for those working at least 1,800 hours per year in the county.

Community amenities will include on-site property management, a dog park, a picnic area, walking trails, a fitness room and a community room. The neighborhood is close to multi-modal transportation including the Blue River Bikeway, Summit Stage and Breck Free Ride bus stops.

The design of the buildings includes several features intended to result in the release of net zero greenhouse gases, including the use of solar panels, according to Hoppin. The community will be built with an all-electric construction and will run solely on renewable and solar power. Other green features include reduced thermal loads through insulation and window designs, in-unit energy recovery ventilation and other high-efficiency products.

Norris Design, a planning, landscape architecture and branding firm with offices in Colorado, Texas, Arizona and Oklahoma, is working with Gorman & Co. on the project.

Lument Loans

Lument, a subsidiary of ORIX Corp. USA, is a national leader in commercial real estate finance and provides capital solutions for investors in multifamily, affordable housing, senior housing and health-care real estate. In September, Lument acquired a $29.6 million loan to fund the construction of Luxe Park Apartments, an eight-building, 280-unit luxury apartment community owned by Hand Development in Macon, Ga. Also in September, Lument arranged a $34.7 million Fannie Mae acquisition loan for the undisclosed buyer of Wexford Townhomes, a 122-unit single-family rental community in Duncanville, Texas, sold by Peak Capital Partners.

Over the summer, Lument arranged acquisition financing for Capital Boutiq and its partner Trinity Investors to buy Hampton Greens, a 309-unit multifamily community in Dallas from Oro Capital.

You May Also Like