Love Funding closed a $26 million construction-to-permanent loan for RiNo Center, a new market-rate apartment project in Denver. Love Funding Senior Director Peter Wessel secured the loan through HUD’s 221(d)(4) loan program. Utilizing the program enabled the property’s developer to lock in a low interest rate during the 18-month construction period and 40-year permanent loan term.
RiNo Center will add 205 market-rate apartments to Denver’s River North neighborhood. The four-story building, located less than one mile northeast of the city’s central business district, will have convenient access to major regional employers, retail stores and restaurants, and a rapidly emerging arts and entertainment scene.
RiNo Center is being developed by Prospect LLC, a Denver-based firm focused on urban infill and transit-oriented projects. The project is also being supported by an equity investment from Argosy Real Estate, a Philadelphia-based real estate investment fund.
“This project is a perfect target for the 221(d) program,” Wessel said. “It helps fulfill HUD’s mission of spurring urban development while providing the developer with very advantageous terms.”
RiNo Center will host a number of energy efficient features, including high-efficiency HVAC systems, low intensity lighting and a 5-kilowatt solar PV system to help power the building’s clubhouse. Internal features include granite countertops, designer lighting and garden tubs.