Love Funding closed a $40.6 million loan to the developer, Tampa-based Aileron Investment Management, for the construction and permanent financing of Grand Central Apartments, an upscale market-rate multifamily community in Fort Myers, Florida.
Grand Central Apartments will consist of two four-story elevator buildings and two three-story walk-up buildings, comprised of 280 one- and two-bedroom luxury-appointed units and high-end community amenities. The property is located within the Cleveland Avenue Redevelopment Area, which the city has targeted for commercial and mixed-use development.
The development will also benefit from tax-increment financing (TIF), which was approved by the Fort Myers Community Redevelopment Agency, as well as storm water nutrient bank credits, which is a new economic development tool being used by the city to incentivize private investment and redevelopment. Municipalities use tax increment financing to promote economic development projects or public improvement projects by utilizing the incremental increase in property taxes to subsidize development costs.
The financing was secured by Love Funding Senior Director Tammy Tate through the U.S. Department of Housing and Urban Development’s 221(d)(4) loan insurance program. The mortgage insurance allows Love Funding to provide low-rate, non-recourse financing for the construction and for a subsequent 40-year term.
Upon completion, the project aims to earn Bronze Level Green/Energy Efficient mortgage insurance premium (MIP) through the National Green Building Standard Program (NGBS). The project design received a Statement of Energy Design Intent (SEDI) score of 97 out of 100, and the development team will work to satisfy NGBS requirements, in part by employing ENERGY STAR appliances and energy-efficient HVAC equipment, lighting and water fixtures.
The modern design is the work of MHK Architecture and Planning, a well-known architectural firm in Southwest Florida. Brooks & Freund, an industry leader in Southwest Florida, is the general contractor leading the development. ZRS Management, LLC, a property management firm specializing in upscale communities, will manage the finished site.