RED Closes Refi Loans for Midwestern Affordable Community
- Oct 28, 2016
By Laura Calugar
Cuyahoga Falls, Ohio—RED Mortgage Capital and National Church Residences recently closed a combined $4 million MAP and Lean refinancing for the renovation of Portage Trail Village, an independent and assisted living facility in Summit County.
Portage Trail Village is a 13-story, 183-unit HUD apartment community located at 45 Cathedral Lane. The property consists of 36 one-bedroom apartments (15 of the units are designated for assisted living) and 147 studio-style apartments (56 are designated for assisted living). Occupancy here is restricted to seniors age 62 and older or disabled. The building was acquired by National Church Residences in 1991 and is 100 percent Section 8 subsidized.
The $3.1 million FHA MAP financing, paired with an approximately $1 million FHA Lean financing, provides for rehabilitation of the building. The process required the building to be divided into two separate condominium facilities. The restoration of the affordable living units was funded through the Lean program and the independent living units were funded under the MAP program. Moreover, National Church Residences was able to leverage additional equity from Low Income Housing Tax Credits and a $1 million subordinate loan from the Ohio Housing Finance Agency.
“We firmly believe in helping our partners build better communities and work hard to find creative ways to help them succeed. This was a unique opportunity for RED to utilize our experience in both affordable housing and senior housing to complete the transaction for our friends at National Church Residences,” said Tracy Peters, RED senior managing director, in a prepared statement.
Under the Assisted Living Conversion Program through HUD, renovations were done in 2009 to convert the first six floors of the building into assisted living units. Floors seven through 13 maintained the independent living status.
“National Church Residences is thrilled to partner with RED on the rehab of Portage Trail. Their expertise was extraordinarily valuable. We are especially excited that the Portage Trail campus will continue to allow our senior residents to have the option to age in place in independent units, and if appropriate, allow them to transition to assisted living units without ever leaving behind their community of friends or the building,” added Matt Rule, senior vice president of development for National Church Residence.
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