Dealmaker: Love Funding Secures $23M For Mixed-Use, Multifamily Assets
Love Funding, Washington, D.C., secured $22.8 million for mixed-use and multifamily assets in Iowa and Michigan.
In Davenport, Iowa, Love Funding Senior Director Harry Cheatham and Director Brian Robertson secured $16.2 million to convert two historic buildings into market-rate apartments with commercial space on the first floor.
When completed, Gordon Van Tine Lofts will offer 113 one-, two- and three-bedroom lofts. The buildings–connected by a covered walkway–were built in the early 1900s and have served as office and warehouse space. The existing buildings’ exterior, interior floors and roof structures will not change but a rooftop pool and observation deck, fitness facility and a lounge/theater room will be added.
The development team includes general contractor Estes Construction, Shive-Hattery architectural and engineering firm and Insight Management and Rentals.
Cheatham and Robertson secured the financing through HUD’s 221(d)(4) loan insurance program. Additional funding will come from state and federal historic tax credit equity, state enterprise zone credit equity and cash.
In Detroit, Love Funding closed a $6.66 million loan through HUD’s 223(a)(7) loan insurance program to refinance and repair Greenhouse Apartments. “This program allows for the refinancing of properties currently insured by FHA, as well as an extension of up to 12 years beyond the original mortgage term,” said Love Funding Midwest Regional Director Bruce Gerhart, who secured the financing.
The 10-story affordable community includes 208 one-bedroom units, all age-restricted and covered under a Section 8 Housing Assistance Payment contract. All units are restricted under the Low Income Housing Tax Credit program.
The 1981-vintage property was substantially renovated in 2008 with financing provided by the HUD 221(d)(4) program in conjunction with low-income housing tax credits. Gerhart said the current refinancing locks in a lower interest rate for a 40-year term and will generate “significant” debt service savings and fund necessary repairs.
