Developer Real Estate Equities, which is based in metro St. Paul, Minn., has obtained a $16.1 million HUD 221(d)(4) loan for the construction of Eastgate Apartments in Rochester, Minn. The property is a 135-unit affordable housing development.
Eastgate Apartments will open in the summer of 2019 with its units restricted to residents earning 60 percent or less of the area median income. The loan features a 40-year term and amortization schedule.
In addition to the HUD-insured first mortgage, which was facilitated by Doughtery Mortgage, the project will receive equity from the sale of Low Income Housing Tax Credits. The development’s financing also involves tax-exempt bonds, which were underwritten by Dougherty Mortgage affiliate Dougherty & Co.
Affordable Housing to Replace Former Dance Club
Eastgate will be built on the site of a former dance club called Wicked Moose that closed about a year ago.
Real Estate Equities specializes in apartments, affordable housing and senior housing. The company has developed apartment communities in Minnesota, Wisconsin and Indiana, but this will be its first property in Rochester.