Dougherty Mortgage Closes $32M Loan for MN Community

The financing will be used to build Union Flats, a 217-unit affordable housing property in St. Paul. The community will be built on a site currently occupied by the Hunt Electric Corp. building.

A rendering of the Union Flats in St. Paul, Minn.

A rendering of the Union Flats in St. Paul, Minn.

Dougherty Mortgage, a full-service national mortgage banking firm, recently closed a $31.5 million HUD 221(d)(4) loan for the new construction financing of Union Flats in St. Paul, Minn. The 217-unit affordable housing property will be rent- and income-restricted to residents earning 60 percent or less of the area median income. 

Located at 2300 West Territorial Road, in the western part of the city, the community will be just north of University Avenue. The project will be constructed on a site currently occupied by the Hunt Electric Corp. building, which will be demolished. According to Yardi Matrix data, the four-story property will feature one-, two- and three-bedroom units. Amenities will include:

  • secured entrance
  • community room with kitchen
  • outdoor patio
  • fitness room
  • rooftop deck
  • dog park
  • storage lockers
  • elevator
  • 296 parking spaces

Each unit will have a refrigerator, range/oven, dishwasher, washer and dryer, window coverings and a patio or balcony.

Equity financing

In addition to the HUD-insured first mortgage, the project will receive equity from the sale of Low Income Housing Tax Credits and funds from the Metropolitan Council, Department of Employment and Economic Development and Ramsey County to be used for environmental clean-up costs.

Dougherty & Co., an affiliate of Dougherty Mortgage, served as the underwriter for the tax-exempt bonds on this transaction. The HUD 221(d)(4) loan has a 40-year term plus construction, and was arranged through Dougherty’s Minneapolis office for borrower St. Paul Leased Housing Associates VIII LLP.

Image courtesy of Dougherty Mortgage