Dealmaker: Fantini & Gorga Arranges $44M

Fantini & Gorga, Needham, Mass., placed $38 million in permanent financing on Country Glen Apartments, a 324-unit multifamily community on 30 acres in Groton, Conn.

Country Glen Apartments.
Photo credit: Fantini & Gorga

“We were able to secure significant cash-out proceeds for the owners through our correspondent lender’s dexterous use of the Federal Housing Administration’s 223(f) permanent financing program” said Fantini & Gorga Executive Managing Director Tim O’Donnell. This was “coupled with additional financing for upgrades and/or repairs within a low-rate long-term fixed-rate loan.”

The loan was placed with Fantini & Gorga’s correspondent lender, Eastern Mortgage Capital, which structured the transaction using Section 223(f) mortgage insurance provided by the FHA. This loan type is non-recourse with no carve-outs is assumable and has a prepayment structure that avoids yield maintenance or defeasance.

Fantini & Gorga also placed a $5.5 million permanent loan for a mixed-use property on Newbury Street in Boston. Derek Coulombe, Senior Managing Director at Fantini & Gorga, structured and placed the ten-year fixed-rate financing with a regional bank.

The property at 163 Newbury Street has two retail/restaurant tenants and two multifamily units. The sponsor recently renovated the entire property, including expanding the footprint to accommodate accessibility requirements and adding modern exhaust systems to meet the needs of a restaurant tenant.