Great Lakes Financial Completes $11.2M Financing for Seniors Preservation Project
- Apr 20, 2010
Ludington, Mich.‑Great Lakes Financial Group LP closed a preservation deal through the MSHDA Tax-Exempt Direct Loan Program with Longfellow Apartments, a 149-unit residential, active adult apartment building development for $3,874,000.
The development, consisting of one seven-story building, also obtained over $1.6 million of equity from 5/3 Bank in exchange for Low Income Housing Tax Credits (LIHTC). In addition, $5,200,000 of stimulus money was provided by the American Recovery & Reinvestment Act. Developer equity capital completed funding.
Built in 1978, the apartments will undergo a substantial rehabilitation. A $2,384,000 hard cost substantial renovation will include a brand new community center and common areas along with extensive unit rehabilitation expenditures.
“This is a great affordable housing seniors apartment. We are working to preserve an affordable housing option in a market that has seen a lot of growth over the past 10 years. This will allow Longfellow Towers to continue to serve the active adults of this community and remain competitive for the long-term,” says Joseph Bobeck, the development’s loan originator.
The Michigan market proved capital sourcing for preservation deals difficult. Stimulus Dollars filled the much needed funding gap.
John Joyce of Retiree Housing Management, the Development’s property management company says, “The MSHDA Direct Loan, stimulus dollars and 5/3 Bank equity will allow the property to benefit from a reduced interest rate as well as allow the property to benefit from much needed capital improvements. The direct benefit to the property will be immediate improvements to the energy efficient windows, air conditioning units, fire suppression upgrades, new kitchen cabinets, counter tops, appliances and bathroom upgrades. These improvements will provide a higher quality of living for all residents at Longfellow Towers and will preserve a much needed source of affordable income housing to the Ludington, Michigan area.”
Great Lakes Financial Group is an approved FHA MAP & LEAN Lender and a Freddie Mac “Program Plus” seller/servicer (one of 26 in country) specializing in financing for multi-family properties. Services offered include the following: underwriting and placement of taxable bond issuances (evaluation of alternative bond enhancement options including FHA, Freddie Mac and Fannie Mae), project sources and uses and cash flow projections, analysis of low-income housing tax credits, historic tax credits and new markets tax credits.