Rockport Mortgage Corporation recently announced the closing of two FHA Section 223(f) refinancing loans totaling $51 million. Verona Senior Citizens Apartments in Verona ($24M), and Mansion Apartments in Pine Hill ($27M). Both properties are owned by LIHC Investment Group, one of the nation’s largest real estate firms committed to the preservation of affordable housing.
Situated on five acres and constructed in 1981, Verona Senior Citizens Apartments is a 160-unit, age-restricted, subsidized Section 8 development comprised of studio and one-bedroom units within one mid-rise building.
Loan proceeds will be used to refinance existing debt, upgrade units, and update the building. Project work includes kitchen and bathroom renovations in all units as well as new vinyl flooring in half of the units not previously upgraded. The building will be updated with new main entry doors, a new emergency generator, a new energy recovery ventilation unit and an upgraded security camera system.
Amenities include a part-time Resident Services Coordinator to coordinate health services and social activities important to this demographic. In addition, the property has enhanced security, exterior sitting areas with tables and benches, a large community room, library, and game room.
Mansion Apartments is a 360-unit, subsidized Section 8 development comprised of one and two-bedroom apartment units located within 19 two-story multifamily buildings and one (1) two-story management office/community room. Less than 20 miles from Philadelphia, the buildings were constructed in 1973 on approximately 25 acres.
The development offers a full range of amenities including two outdoor pools, playground, community room and management office as well as 423 open, uncovered off-street parking spaces.
Loan proceeds will be used to finance repairs, building and unit upgrades and fund the replacement reserve account. Building and unit upgrades include renovations to kitchens and baths in all units, the installation of new HVAC in half of the units, new patio doors for the buildings, a new emergency generator, sewage pump lift station and accessibility upgrades.
“We are proud to work with Rockport and HUD to finalize this strategic and important financing for both properties,” said Andrew Gendron, Principal, LIHC Investment Group. “This transaction places affordable homes at Verona Senior Citizens Apartments and Mansion Apartments on secure footing for years to come, ensuring they will continue to serve existing and future residents as well as their surrounding communities.”
In connection with the refinancing of Verona Senior Citizens Apartments and Mansion Apartments, LIHC Investment Group entered into new 20-year project-based Section 8 contracts and agreed to further extend these new contracts by the number of years remaining on the prior Section 8 contracts. Effectively, this means that Verona Senior Citizens Apartments will remain affordable for 31-years and Mansions Apartments will remain affordable for 39-years.
“We’re grateful to once again work with the professionals at LIHC Investment Group,” noted Dan Lyons, Managing Partner, Rockport Mortgage Corporation. “Our two organizations share a deep commitment to the preservation of affordable housing across the country. These loans provide the necessary funding to enhance the marketability of the properties and improve the quality of life of the tenants as well as secure the long-term affordability of both properties.”
About Rockport Mortgage Corporation
Consistently ranked as one of the top FHA multi-family lenders in the country, Rockport Mortgage is a privately-held commercial banking firm located on the North Shore of Boston. Founded in 1992, Rockport Mortgage specializes in providing FHA-insured loans to market-rate, affordable and senior multi-family properties as well as assisted living and healthcare facilities. The Rockport Mortgage team works collectively to navigate the complexities of FHA/HUD-insured financing programs, developing strategic solutions to meet the diverse needs of its clients. For more information, visit www.rockportmortgage.com
About LIHC Investment Group
Led by Charlie and Andrew Gendron, LIHC Investment Group has grown to become one of the most respected real estate investment groups in the industry. The firm holds an ownership interest in 35,000 units of multi-family affordable housing nationwide and is ranked No. 3 on Affordable Housing Finance’s list of companies completing substantial rehabilitations. Over the years, LIHC has transacted with over 4,000 Limited and General Partners to acquire well over $5.5 billion in holdings, primarily in metropolitan areas such as New York City and Boston. For more information, visit www.lihc.com