St. Paul, Minn.-based Oak Grove Capital recently originated $17.9 million in FHA financing for the National Foundation for Affordable Housing Solutions. The loans will be used for the purchase and rehabilitation of three affordable housing complexes in Minnesota: Seward Square Apartments in Minneapolis, Lewis Park Apartments in St. Paul and Eastport Apartments in Mankato.
As the lead lender, Oak Grove Capital worked with the borrower, HUD and other capital sources to simultaneously close all three loans, each of which included tax-exempt bonds, MHFA soft financing and the use of Low Income Housing Tax Credits.
All three fixed-rate HUD 221(d)(4) loans carry a 12-month construction period plus a 40-year term.
Seward Square, an 81-unit Project-based Section-8 development, received $6.5 million of the financing. Lewis Park, a 103-unit Project-based Section-8 complex, received $7.8 million. The remaining $3.6 million went to Eastport Apartments, a 78-unit Project-based Section-8 community. The financing will be used to substantially renovate and preserve the three long-term affordable housing projects originally constructed in the late 1970s.