MassHousing Provides $206M Refi for 10 Affordable Communities

Totaling 931 units, the properties are owned by Providence Realty Investment.

Norton Glen. Image courtesy of MassHousing

Providence Realty Investment LLC has secured a $206 million loan for the refinancing and preservation of affordability of 10 communities located in Massachusetts. Seven of the 10 properties are affordable senior housing communities. MassHousing provided the financing package for the 931 units. Rockport Mortgage Corp. was the lending partner, while Wingate Management manages all 10 properties.

The properties, along with their respective latest MassHousing refinancing, are:

  • Cedar Glen in Reading, $29.3 million, 114 senior housing units 
  • Glen Grove in Wellesley, $38.4 million, 125 senior housing units  
  • Gosnold Grove in Falmouth, $4.4 million, 33 units  
  • Nehoiden Glen in Needham, $16.5 million, 61 senior housing units  
  • Chestnut Glen in Abington, $25.6 million, 130 senior housing units  
  • Heritage Green in Sturbridge, $13.9 million, 130 units, both regular and age-restricted
  • Noonan Glen in Winchester, $4 million, 18 senior housing apartments  
  • Norton Glen in Norton, $29.6 million, 150 units 
  • Longfellow Glen in Sudbury, $32.2 million, 120 units, both regular and age-restricted  
  • Old Mill Glen in Maynard, $10.7 million, 50 units  

A fruitful combination of loans, insurance

MassHousing provided the MAP/Ginnie Mae loan to the owner through HUD. HUD offers Federal Housing Administration insurance approvals through the MAP program. This enables Providence Realty Investment to have access to taxable mortgage financing with lower interest rates, helping the company preserve and extend affordability.

In 2011, the owner received another $123 million from MassHousing for the acquisition of the 10 communities, which extended the affordability at the properties by 60 years. Additionally, MassHousing originally financed all the properties between 1979 and 1984. Most of the units are subsidized by federal Section 8 Housing Assistance Payment contracts that are slated to remain in place or be renewed and extended.

Last month, MassHousing provided another $19.5 million for the preservation of affordability at Valebrook Associates’ 151-unit Valebrook Apartments in Lawrence, Mass. Rockport Mortgage Corp., was MassHousing’s lending partner in this transaction as well.

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