Dougherty Mortgage recently closed a $12.8 million HUD 221(d)(4) loan for the acquisition and substantial rehabilitation financing for multifamily development Unity Place in Brooklyn Center, Minnesota.
Unity Place consists of 112 affordable multifamily units, all of which are covered by a Project-Based Section 8 HAP Contract. The property includes 11 residential buildings that are each two stories in height.
As part of this transaction, the property will receive $5.2 million ($46,000 per unit) in renovation work, including the construction of a new clubhouse building, which will include a new management office, community room with kitchen, fitness center, private conference room, restroom and patio.
In addition to the HUD-insured first mortgage, the project utilized 4 percent Low Income Housing Tax Credits and tax-exempt bonds. The bonds were underwritten by Dougherty & Company LLC, an affiliate of Dougherty Mortgage LLC. The 40-year term, 40-year amortization loan was arranged for borrower Unity Limited Partnership.