Karen Dubrosky and Frank Hogan of the Minneapolis office of Colliers Mortgage and Colliers Securities, respectively, closed a $10.9 million HUD loan for the acquisition and rehabilitation of the Grand Forks Portfolio in Grand Forks, North Dakota.
The Portfolio is a 182-unit affordable multifamily and seniors housing scattered sites project consisting of three properties. University Square includes 60 multifamily units. Columbia Square East includes 50 senior units. And Columbia Square South includes 72 multifamily units. All 182 units are covered by Project-Based Section 8 HAP Contracts.
As part of the transaction, the project will receive $13.66 million ($75,000 per unit) in renovation work, including dwelling unit and community space upgrades. In addition to the HUD-insured first mortgage, the project utilized Low Income Housing Tax Credits, Housing Incentive Funds (HIF) from the North Dakota Housing Finance Agency (NDHFA), and Tax-Exempt Bonds. The Bonds were underwritten by Colliers Securities LLC, an affiliate of Colliers Mortgage LLC.
As part of the transaction, the borrower, which is controlled by The Schuett Companies, Inc., will acquire the distressed assets, complete the substantial rehabilitation, and stabilize operations, while improving the living conditions for the low-income residents. The project will also be managed by The Schuett Companies, Inc., as the company continues to expand its ownership and management of properties outside of Minnesota, to include those throughout the Midwest.
The loan carries a 40-year term/amortization and was arranged for borrower, Schuett Grand Forks, LP.