Pennrose Lands Financing for Massachusetts Affordable Redevelopment

MassHousing provided the funds.

Pennrose Properties has secured $19.2 million for the redevelopment of Cape Cod Five Bank’s former operations center in Orleans, Mass., into affordable and workforce housing. MassHousing funded the project with $15.4 million in tax credit equity bridge financing, $2.8 million in permanent financing and $1 million through its Workforce Housing Initiative. The Architectural Team provided designs and Dellbrook/JKS is the general contractor.

Hudson Capital syndicated the tax credits, while Webster Bank and Santander Bank are equity investors. Other sources of financing for the project include:

  • $20.3 million in construction financing from Webster Bank
  • $14.1 million in state tax credit loans from the Massachusetts Housing Investment Corp.
  • $13 million in equity through an LIHTC allocation by the Massachusetts Executive Office of Housing and Livable Communities
  • $2.5 million in local Community Preservation Committees funds
  • $1.5 million in American Rescue Plan Act funds from Barnstable County
  • $1 million in ARPA financing through the Affordable Housing Trust Fund

The project will encompass 62 units. Developers will convert the existing bank building—constructed in 1977—into 20 residences and build a new wing for an additional 34 units, as well as two new four-unit townhouse-style structures. The development will comprise one-, two- and three-bedroom floorplans and include amenities such as a fitness room, community room, package room and resident services office.

Of the total, nine residences will be reserved for households earning up to 30 percent of the area median income, eight of which are supported by Section 8 subsidies, and one through MRVP. Additionally, 43 residences will be income restricted at 60 percent of the AMI, and 10 will be designated as workforce housing for residents making up to 80 percent of the AMI.

Pennrose’s expansive affordable footprint

Pennrose Properties currently has more than 50 affordable projects of 50 units or more, under various stages of development or permitting, comprising more than 7,100 residences, according to Yardi Matrix information. Additionally, it owns and operates more than 100 such properties totaling more than 10,000 affordable apartments.

Recently, the company broke ground on a $28 million income-restricted project for seniors in Phoenix. The development will add 60 units to 100 existing ones and expects completion by winter 2024.

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