Love Funding, a subsidiary of Midland States Bancorp, Inc. (NASDAQ: MSBI) and one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of a $17.3 million loan to acquire and renovate Cranbrook Senior Tower in Ann Arbor, Michigan.
Love Funding Midwest Regional Director Bruce Gerhart secured the loan through a pilot program at the U.S. Department of Housing and Urban Development (HUD) designed to expedite processing times for the acquisition or refinance of affordable rental apartments with low-income housing tax credits (LIHTCs). The financing was supplemented with 4 percent LIHTCs, and Midland States Bank provided a bridge loan to fund the tax credit equity.
Cranbrook Senior Tower, built in 1980, is a 202-unit affordable housing development that is restricted to residents 62 or older and operates under a project-based housing assistance payments (HAP) contract that provides rent subsidies to those meeting low-income thresholds. As part of the transaction, the property’s current HAP contract was renewed for an additional 20-year term, ensuring residents will be able to continue receiving rental assistance in an area that is dominated by market-rate rental properties. In addition, more than $3.5 million of the financing proceeds will go toward renovating the property, including a new generator, HVAC system, siding, appliances and carpeting.
The buyer in the transaction is GCD-Cranbrook Limited Dividend Housing Association LLC, whose active principals are Amin A. Irving and Mary Tischler. Mr. Irving is the president of Ginosko Development Company, which he co-founded in 2002 to preserve and develop affordable housing throughout Michigan and the U.S. Midwest. Ms. Tischler joined GDC as its chief financial officer in 2012. She has more than 20 years of accounting and consulting experience, with a focus on affordable housing.
“Cranbrook Tower is an exciting opportunity not only for Ginosko Development Company, but for the residents we serve,” Irving said. “It is truly a great feeling to have Love Funding be a part of GDC’s development team knowing that the needs of seniors will be met with an exceptional funding process.”
About Love Funding
Love Funding is an experienced FHA lender serving clients across the country from its headquarters in Washington D.C. and offices nationwide. The company offers refinance, construction, rehabilitation and acquisition financing programs for multifamily and affordable housing, healthcare facilities and hospitals. Love Funding is a subsidiary of Midland States Bank, Inc. (NASDAQ: MSBI), a $3 billion community banking organization headquartered in Effingham, Illinois. To learn more please visit our website and join us on Facebook and Twitter.
About Midland States Bancorp, Inc.
Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, and is the sole shareholder of Midland States Bank. Midland had assets of approximately $3.2 billion, and its Midland Wealth Management Group had assets under administration of approximately $1.7 billion as of December 31, 2016. Midland provides a full range of commercial and consumer banking products and services, merchant credit card services, trust and investment management, and insurance and financial planning services. In addition, commercial equipment leasing services are provided through Heartland Business Credit, and multi-family and healthcare facility FHA financing is provided through Love Funding, Midland's non-bank subsidiaries. Midland has more than 80 locations across the United States. For additional information, visit www.midlandsb.com or follow Midland on LinkedIn at https://www.linkedin.com/company/midland-states-bank.