Love Funding closed an $6.66 million loan for the refinancing and repair of Greenhouse Apartments, an affordable senior living community in Detroit. Greenhouse Apartments offers 208 age-restricted, one-bedroom units and one two-bedroom manager’s unit in a 10-story building. All of the age-restricted units are covered under a Section 8 HAP contract, and all 209 units are restricted under the Low Income Housing Tax Credit (LIHTC) program.
The financing was secured by Love Funding Midwest Regional Director Bruce Gerhart through the U.S. Department of Housing and Urban Development’s 223(a)(7) loan insurance program. This program allows for the refinancing of properties currently insured by FHA, as well as an extension of up to 12 years beyond the original mortgage term.
The property was built in 1981 and was substantially renovated in 2008 with financing provided by the HUD 221(d)(4) program in conjunction with an award of low-income housing tax credits (LIHTCs). The current refinancing, which locks in a lower interest rate for a 40-year term, will generate significant debt service savings and fund necessary repairs.
Greenhouse Apartments will remain under the management of KMG Prestige, a firm approved to manage HUD-affiliated communities. The ownership group of KMG has a combined 50 years of experience in the property management industry.
For more information, contact Bruce Gerhart at (216) 583-0812.