Pillar Originates $20.7M HUD Loan
- Jul 15, 2014
Portage, Mich.—Guggenheim Partners affiliate Pillar has originated a $20.7 million FHA/HUD loan for the acquisition and rehab of a 300-unit property in Portage, Mich., known as Milham Meadows Apartments. The property is fully leased and will remain fully tenanted through the rehabilitation of all units and grounds.
“We worked closely with the Detroit HUD office and the Michigan State Housing Development Authority to meet Federal and State affordable housing requirements and close the loan in less than four months,” says Peter Nichol, managing director in Pillar’s San Francisco office. “This is an extremely high profile affordable housing preservation project that will benefit from millions of dollars of capital invested in enhancing and preserving the property for years to come. Everyone involved recognizes the tremendous community benefits.”
Integra Property Group, a Seattle-based multifamily investment firm focused on affordable housing preservation, was the borrower. There are plans for a substantial improvement to energy efficiencies as well as unit upgrades.
“Pillar did an outstanding job of working with us and each Federal and State agency to create a highly customized solution that addressed a complex set of requirements, and we look forward to working with them in the future,” says Hans Juhle, managing member of Integra Property Group. “The preservation of Milham Meadows will ensure hundreds of low-income households in west Michigan receive access to high-quality affordable housing.”
HFF arranges $8.5M for Tampa apartments
Tampa, Fla.—HFF has arranged an $8.5 million refinance for The Park at Chesterfield, a 244-unit garden community in Tampa, Fla. The borrower was Blue Rock Partners. Terms included a seven-year 2.48 percent floating-rate loan via Freddie Mac’s CME program.
The Park at Chesterfield is located at 5039 Chalet Court in northeast Tampa proximate to Busch Gardens Tampa and Adventure Island waterpark. Renovated in 2011, the property is 93 percent leased. Community amenities include two newly renovated swimming pools, a fitness center, playground, clubhouse and business center.
HFF’s debt placement team representing the borrower was led by managing director Elliott Throne and associate director Todd Adams from the firm’s Miami office as well as director Michael Tabor from the firm’s Tampa office. Blue Rock Partners LLC is led by co-managing partners Randy X. Ferreira and Reuven Oded, and owns/manages 6,425 multi-housing units in Central Florida.
Boston Capital provides capital for two LIHTC properties
Wilmington, N.C.—Boston Capital is investing in the construction of Lockwood Village Apartments, a 60-unit development for families in Wilmington, N.C., and Ravenswood Apartments, a 72-unit development for families located in Wilson, N.C.
The developments will be built with tax credit equity from the Low Income Housing Tax Credit (LIHTC) program. The developers are SNW, LLP and CASA (Community Alternatives for Supportive Abodes), both located in Raleigh, N.C.
“Great developer partners like the Norris family combined with strong markets and superb locations attracted Boston Capital to these investments in North Carolina,” says Jack Manning, president and CEO of Boston Capital. “Additionally, both newly constructed developments will have a stimulative impact on the North Carolina economy through the creation of jobs and the generation of local salaries.”
Located on 4.42 acres, Lockwood Village Apartments will feature 12 one-bedroom/one-bath and 48 two-bedroom/two-bath units in five, three-story buildings. Ravenswood Apartments, located on more than nine acres, will include 20 one-bedroom/one-bath and 52 two-bedroom/two-bath units in nine, two-story buildings. Lockwood Village Apartments and Ravenswood Apartments will be available to families and individuals earning 60 percent or less of the Area Median Income (AMI).
Units in both apartment communities will feature Energy Star appliances and HVAC systems, ceiling fans, patios or balconies, extra storage and washer/dryer hookups. Both developments will offer a 1,200 square foot community building featuring on-site management and management offices, a community room with kitchen, a computer room, a central laundry, a gazebo, a playground and a screened porch with seating overlooking the playground.
The construction of these developments will generate nearly $14.2 million in local salaries and create nearly 150 new jobs in the Wilmington and Wilson areas. Boston Capital’s investments in the developments add 132 units of affordable housing to its apartment portfolio. To date, Boston Capital has invested in approximately 5,800 units of affordable housing in North Carolina.