NEW YORK, Dec. 4, 2017 /PRNewswire/ -- Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today it provided a Freddie Mac Tax Exempt Loan to finance the acquisition and rehabilitation of an affordable multifamily property located in Fort Collins, Colorado. The total loan amount was $18.2 million.
Village on Shields Apartments is comprised of 24, two- and three-story garden-style apartment buildings with a total of 285 units. The property was developed during the 1990's under the Low-Income Housing Tax Credit Program. The property also has a separate leasing/management office building that contains one unit reserved for employee use.
The borrower is Village on Shields, LLLP, a Colorado Limited Liability Limited Partnership backed by Housing Catalyst (aka Housing Authority of the City of Fort Collins), the largest affordable housing developer and property management company in Fort Collins and one of the top performing housing authorities in the country. The loan has a 17-year term and 35-year amortization schedule.
"Housing Catalyst plans to implement extensive renovations at Village on Shields Apartments and will invest over $25 million in improvements. The renovation is expected to be complete by December 2018 and at that point the property will be in excellent physical condition," commented Tim Hoppin, Director at Hunt Mortgage Group. "There is a high demand for housing in the Fort Collins area and the deal sponsor is an experienced sponsor of affordable housing. We were pleased to play a role in this deal to help preserve much needed quality affordable housing in the local community. This is a great example of how 4% Low Income Housing Tax Credits and Private Activity Bonds are utilized to ensure long term affordability for residents in need of stable housing."
"In late 2016, the borrower acquired a vacant community/clubhouse building with swimming pool that was formerly part of a neighborhood homeowners association," added Hoppin. "The plan is to fully renovate that building to offer additional on-site amenities to residents."
The property is part of the Rental Assistance Demonstration (RAD) Program in which public housing units within Housing Catalyst's portfolio will be converted to Project-Based Section 8 Housing at the Property with a 20-year HAP Contract in-place at closing covering 52 units.
Housing Catalyst will also use 4% Low Income Housing Tax Credits to help finance the acquisition and rehabilitation.
Project amenities include an on-site leasing/management building, clubhouse building with fitness center (completed during renovation), swimming pool (completed during renovation), picnic area and children's playground.
The Property is located in the City of Fort Collins, Larimer County, Colorado within the Fort Collins-Loveland, metropolitan statistical area.
About Hunt Mortgage Group
Hunt Mortgage Group, a wholly owned subsidiary of Hunt Companies, Inc., is a leader in financing commercial real estate throughout the United States. The Company finances all types of commercial real estate: multifamily properties (including small balance), affordable housing, office, retail, manufactured housing, healthcare/senior living, industrial, and self-storage facilities. It offers Fannie Mae, Freddie Mac, HUD/FHA in addition to its own Proprietary loan products. Since inception, the Company has structured more than $21 billion of loans and today maintains a servicing portfolio of more than $13.4 billion. Headquartered in New York City, Hunt Mortgage Group has 222 professionals in 24 locations throughout the United States. To learn more, visit www.huntmortgagegroup.com.
Hunt Mortgage Group
SOURCE Hunt Mortgage Group