The acquisition and rehabilitation of The Hylands II, an apartment complex in Rochester, Minnesota, will begin this month following the closing of a $6.2 million construction loan and placement of $4.4 million in low-income housing tax credit equity from Associated Bank.
CREA, LLC is the syndicator for the project at 2800 Charles Court NW in Rochester. The Minnesota Housing Finance Agency issued the tax credits. Titan Development and Investments, Inc. will complete the renovation.
Built in 1980 The Hylands II is located 10 minutes from downtown Rochester. The development consists of 100 apartment units in 16 townhouse and flat buildings. There are six one-bedroom, 62 two-bedroom and 32 three-bedroom units. Five units will be designated for tenants with disabilities and five others will be designated as long-term homeless units.
A total of 95 of the units will be set aside for tenants at 60 percent of Area Median Income. Five will be set aside for tenants at 30 percent of Area Median Income.
Steve Clifford, a senior vice president with Associated Bank, handled the loan arrangements and closing. Teresa Rubio, senior vice president for the bank’s Associated Communty Development department, managed the equity investment.