Dougherty Closes Acquisition Loan for Minneapolis Asset

The company worked on behalf of the borrower to secure the 35-year term HID 223(f) acquisition and rehabilitation loan. The borrower will invest $34,000 per unit in upgrades.
Drake Apartments
Drake Apartments

After recently arranging a $31.3 million construction loan for a downtown Minneapolis asset, Dougherty Mortgage LLC has secured a $4.8 million loan for the acquisition and rehabilitation of Drake Apartments, a 48-unit affordable community in Coon Rapids, Minn. The HUD 223(f), 35-year term and amortization loan was arranged on behalf of the borrower, Drake MDG Ltd. Partnership.

Located at 10015-10021 NW Drake St., the community is close to various shopping, dining and entertainment venues such as Coon Rapids Dam Regional Park, Springbook Nature Center, Locke County Park and West Coon Rapids Dam Visitor Center. Coon Rapids-Riverdale station and Anoka Station are minutes away from the property. Additionally, the Minneapolis-St. Paul International airport is a 33-minute drive away.

Built in 1978 and renovated in 2001, the two-story building offers a mix of studios, one-, two- and three-bedroom units ranging from 478 to 1,264 square feet. Drake features common area amenities including a playground, laundry facilities, Wi-Fi, washer/dryer, a picnic area, storage space and walk-in closets.

The project will undergo a rehabilitation of approximately $34,000 per unit.

Image via Google Street View