River North Apartments
Lending - Freddie Mac - $20.4M
Greystone provided $20,423,000 in total Freddie Mac Forward Rate Lock Tax-Exempt Loan (“TEL”) financing for the construction of River North Apartments, an affordable housing development to be located in Coon Rapids, MN. Coon Rapids Leased Housing Associates IV, LLC, an affiliate of Dominium Development & Acquisition, is the sponsor and developer for the planned 167-unit project.
The Forward Commitment reflects a 36-month period, and the Freddie permanent loan term utilizes a bifurcated loan structure with an “A” and “B” piece. The “A” piece loan, in the amount of $18,980,000, carries a 15-year term with 35-year amortization and sized to the supported level of loan proceeds based on the approved underwritten NOI for the project assuming full real estate tax load. The “B” piece loan, for $1,443,000, carries a 15-year term with 25-year amortization with the loan sized based on the Tax Increment Financing Note (TIF) income stream. The combined loan parameters include minimum DSCR of 1.15x and maximum LTV of 90%.
River North Apartments will comprise 105 one-bedroom/one bath units, 17 two-bedroom/one bath, 26 two-bedroom/two bath units, and 19 three-bedroom/two bath units. Common amenities will include parking, leasing office, fitness center, salon, card/craft room, theater package room storage and controlled access to the property.
“We are thrilled to have completed another successful Freddie Mac Forward TEL and feel this lending vehicle serves a critical role in helping to develop new affordable housing across the country,” said Jeff Englund, senior managing director and head of Greystone’s affordable housing lending group.
“Greystone’s expertise in affordable housing financing is matched perhaps only by their commitment to client service,” said Ryan Lunderby, vice president of Dominium. “We could not be more pleased with the outcome of this financing and look forward to working with Greystone again on future affordable housing transactions.”