Suburban Minneapolis Apartments Get $21M HUD Refi

Part of the financing will cover capital improvements to Oak Park Village’s 100 fully affordable units.
Oak Park Village

Dougherty Mortgage has closed a $20.7 million HUD 221(d)(4) loan for Vitus Group’s 100-unit Oak Park Village in St. Louis Park, Minn. The refinancing package, which includes a project-based Section 8 HAP contract, will retire $12.5 million in acquisition and development financing encumbering the fully affordable property, Yardi Matrix data shows. An affiliate of Dougherty underwrote Low Income Housing Tax Credits and tax-exempt bonds for the community.  

The non-recourse financing has a 40-year term plus construction period and a 40-year amortization period. Some $4.7 million of the loan proceeds will be used for unit and common area renovations. Planned improvements include the partial replacement of mechanical, plumbing and electrical systems, the implementation of LED lighting and upgrades to an existing playground.

Located on 7 acres at 7267 Oak Park Village Drive, the asset is within walking distance of several parks, less than 4 miles from Interstate 394 and 8 miles southwest of downtown Minneapolis. The fully affordable community was completed in 1978 and has one-, two- and three-bedroom apartments in 10 two- and three-story buildings. The owner selected Evergreen Real Estate Group to manage the property earlier in May as part of a 971-unit affordable portfolio assignment.