Mortgage banking company Merchants Capital has secured $57 million in financing through a HUD 221(d)(4) loan for 4th & Race, a mixed-use multifamily apartment complex coming to downtown Cincinnati in 2021.
The 40-year HUD 221(d)(4) new construction loan was secured on behalf of Flaherty & Collins Properties.
Currently under development, the 4th & Race project will be a 264-unit market-rate multifamily property. The new construction loan represents the multifamily component of a larger development that will also include about 20,000 square feet of retail space in addition to a five-story parking garage that will be available to multifamily residents and the public. The project is scheduled to open in the first half of 2021.
The project was designed and is being built to qualify for the National Green Building Standards Certification, which in turn qualifies the mortgage for HUD’s green MIP program. Standard construction projects built with HUD 221(d)(4) financing require 65 basis points of initial and annual MIP payments. With green MIP, this project only has to pay 25 basis points in MIP initially and annually, creating 40 basis points in annual savings for the developer.
The multifamily complex represents a true public-private partnership, as Flaherty & Collins Properties worked concurrently with the City of Cincinnati, the Port Authority of Greater Cincinnati and the Cincinnati Center City Development Corp to bring this project to life.
“We are proud to partner with Flaherty & Collins Properties and all other participating parties by providing the construction and permanent financing for this new project,” said Merchants Capital vice president Eddie Dietrick. “We look forward to opening this multifamily, luxury property for Cincinnati residents in 2021.”
The residential portion of the project being financed by Merchants Capital will sit on top of the parking and retail components. The parking and retail structure were under construction during the processing of the HUD closing, and Merchants Capital worked together with Flaherty & Collins Properties to time the closing date so the construction teams could flow seamlessly from the garage construction to the residential construction.
Other amenities of 4th & Race include 8,000 square feet of outdoor space, a 6,000-square-foot indoor amenity area, and a sky deck with views of downtown and the Ohio River. For residents, the outdoor space features, a pool, grilling stations and seating areas, while the indoor amenities include a fitness center, yoga room, gaming area and club room for residents and their guests.