NEW YORK, October 29, 2020 / PRNewswire / – Lument, the combined organization of traditional industry experts Hunt Real Estate Capital, Lancaster Pollard and RED Capital Group, provided a $ 8 million Unfunded Term Commitment Loan from Freddie Mac to the Delaware State Housing Authority (DSHA). The permanent financing will repay the construction and renovation debt of a portfolio of three properties.
Founded in 1968, the DSHA portfolio consists of over 600 affordable units. The portfolio of 106 housing units under renovation consists of Holly Square, located at Middletown, Delaware, and McLane Gardens and Peach Circle, both at Smyrna, Delaware. The renovation project consists of major interior and exterior upgrades, as well as improved ADA compliance and accessibility for seniors.
“We were pleased to provide permanent low cost financing for this important renovation project,” said Josh reiss, director at Lument. “Every transaction that improves the availability of affordable, high-quality housing is important, and this one is no exception.
All three properties will be converted from public housing to affordable section 8 funded housing. In addition, all 106 units will now have 20-year Housing Assistance Payment (HAP) contracts as part of the demonstration program of rental assistance (RAD).
The portfolio of three properties has received a 4% Low Income Housing Tax Credit (LIHTC) allocation that will limit units to affordable levels based on the area’s median income (MAI). holly place and Peach Circle will be open to persons 62 years of age and over, with McLane Gardens having general occupancy.
Since 2014, Reiss and the Lument team have funded nearly $ 900 million in RAD transactions totaling approximately 12,000 units.
ORIX Real Estate Capital Holdings, LLC, d / b / a Lument, is a subsidiary of ORIX Corporation United States. Lument is a national leader in commercial real estate financing. As a combined organization of traditional industry experts Hunt Real Estate Capital, Lancaster Pollard and RED Capital Group, Lument offers a comprehensive set of tailor-made capital solutions for investors in multi-family, affordable, senior housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA and USDA lender. In addition, Lument offers a range of exclusive commercial lending, investment banking and investment management solutions. Securities, investment banking and advisory services are provided by OREC Securities, LLC, d / b / a Lument Securities. For more information visit www.lument.com.
Michael ratliff | Marketing director
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