Pillar, a Guggenheim Partners affiliate and an industry leader of financing solutions for affordable housing, announced today that it has originated a $20.7 million FHA/HUD loan for the acquisition and rehabilitation of Milham Meadows Apartments, a 300-unit property located on the corner of Milham Road and Oakland Drive in Portage, Michigan. The property is fully leased and will remain fully tenanted through the rehabilitation of all units and grounds.
Peter Nichol, Managing Director in Pillar’s San Francisco office originated the transaction working closely with Pillar’s FHA lending team based in Bloomfield Hills, Michigan including Mark Wiedelman, President of the firm’s FHA lending division and Nancy A. Ludwick, Chief FHA Underwriter. The affordable housing team secured a construction and permanent mortgage loan to facilitate the substantial rehabilitation of the property with short term tax exempt bonds and 4% tax credits. Pillar coordinated with all State and Federal agencies to close the loan and initiate the construction in time to meet tight regulatory timelines faced by the borrower. The transaction closed on June 20, 2014.
The borrower, Integra Property Group, is utilizing Pillar’s acquisition loan and proceeds from the sale of low income housing tax credits to purchase the property and to rehabilitate a number of elements, including a substantial renovation of energy and unit upgrades, as well as capital systems upgrades. The transaction will serve all residents, and the rehabilitation will not result in any tenant displacement.