Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced it provided a Freddie Mac Tax Exempt Loan for$18.2 million to finance the acquisition and rehabilitation of an affordable multifamily property located in Fort Collins.
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, 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,” commented Hunt Mortgage Group Director Tim Hoppin. “There is a high demand for housing in the Fort Collins area and the deal sponsor is experienced in 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.”
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 part of the Rental Assistance Demonstration 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.
