The Minneapolis office of Colliers Mortgage, part of Colliers International|U.S., recently closed a $38.5 million HUD 221(d)(4) loan for the land acquisition and new construction financing of Aster House Apartments, a proposed 204-unit affordable multifamily property in Eagan, Minnesota.
Aster House Apartments is anticipated to open in the summer of 2022. All 204 units will be rent- and income-restricted, with the average rent restricted to 60 percent AMI or below.
In addition to the HUD-Insured First Mortgage, the project will receive equity from the sale of Low Income Housing Tax Credits and funds from the Dakota County Community Development Agency Housing Opportunities Enhancement Program. The project also involved Tax-Exempt Bonds, which were underwritten by affiliate Colliers Securities LLC.
The 40-year term and amortization HUD 221(d)(4) new construction loan was arranged for borrower Eagan AH I, LLLP.