The Minneapolis office of Dougherty Mortgage recently closed a $16.1 million HUD 221(d)(4) loan for the new construction of Eastgage Apartments, a 135-unit multifamily affordable housing property in Rochester, Minnesota.
Eastgate Apartments is expected to open in the summer of 2019, with all 135 units restricted to residents earning 60 percent or less of the Area Median Income. An additional 27 units are restricted to Fair Market Rents.
In addition to the HUD-insured first mortgage, the project will also receive equity from the sale of Low Income Housing Tax Credits. The project also involved tax-exempt bonds that were underwritten by Dougherty Mortgage affiliate Dougherty & Company.
The loan features a 40-year term and amortization schedule, and was arranged for borrower BDKN LLLP.