Love Funding closed a $17.3 million loan to acquire and renovate Cranbrook Senior Tower in Ann Arbor, Michigan.
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.
“Cranbrook Tower is an exciting opportunity not only for Ginosko Development Company, but for the residents we serve. 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,” president of Ginosko Development Company, Amin A. Irving said.
Love Funding Midwest Regional Director Bruce Gerhart secured the loan through the U.S. Department of Housing and Urban Development (HUD). The financing was supplemented with 4 percent LIHTCs, and Midland States Bank provided a bridge loan to fund the tax credit equity.