Love Funding closed a $22 million FHA bridge loan to build Preserve at Mountain Island, a new market-rate apartment complex in Charlotte, North Carolina. The new community will offer 240 one-, two- and three-bedroom units in 15 buildings in the northwest Charlotte suburb of Mountain Island. The area is named for a small island in Mountain Island Lake that once housed a cotton mill and now serves as a recreation and camping attraction. Preserve at Mountain Island will offer boat storage among other high end amenities.
Love Funding Senior Director Laura Saull-Smith and Director Ann Bolen obtained the bridge loan from Love Funding’s parent company, Midland States Bank. The loan will help the borrower, BRC Mountain Island, LLC, move forward with the project before it obtains long-term financing through the U.S. Department of Housing and Urban Development’s (HUD’s) Section 223(f) program. The term of the loan is five years, but the borrower will only have to make interest payments during the initial two-year construction period.
The loan is the biggest commitment the company has closed to date after introducing the bridge loan platform in May 2015 as a means for providing interim funding support for acquisition and refinancing applications on HUD multifamily and healthcare loans. The platform was later expanded to include tax credit equity bridge loans, and construction/mini-perm financing for multifamily and healthcare development.