Dealmaker: Eastern Mortgage Capital Funds $61M in HUD 223(f) Loans

Eastern Mortgage Capital, Burlington, Mass., provided $61 million for multifamily properties in Connecticut and Maine.

In Groton, Conn., EMC provided $38 million in permanent financing on Country Glen Apartments, a 324-unit multifamily community on 30 acres.

“Through HUD’s 223(f) permanent financing program, we were able to secure significant cash-out proceeds for the owners, coupled with additional financing for upgrades and/or repairs within a low-rate, long-term fixed-rate loan,” EMC President Peter Panagako noted.

The non-recourse loan had no carve-outs is assumable and has a prepayment structure that avoids yield maintenance or defeasance.

EMC also provided $23 million in permanent financing for Danforth Heights, a 166-unit mixed-income multifamily property located between Portland, Maine’s historic district and waterfront.

“We were able to provide both significant cash-out proceeds to the owners as well as additional financing for upgrades and/or repairs within a low-rate, long-term, fixed-rate loan,” Panagako said.

The loan included step-down prepayment for 10 years and no prepayment penalty thereafter and is assumable.