Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today it has utilized HUD’s 223(f) loan program to finance the acquisition and rehabilitation of two affordable multifamily properties located in New York. The total loan amount was $20.9 million.
The borrower is Riverside Charitable Corporation (RCC). RCC was founded in 1988 as a 501(c)(3) Nonprofit Public Benefit Corporation as a provider of affordable housing and life enriching supportive services. The developer is Gil Seton Jr. and SP Investment Fund LLC. The properties include:
- Raymond Watkins Apartments. Raymond Watkins Apartments is a 112-unit age-restricted and affordable Section 8 subsidized multifamily property located at 57 Ballston Avenue in Saratoga Springs, New York. The loan term is 30 years. Hunt Mortgage Group provided a loan in the amount of $13.95 million to facilitate the acquisition and rehabilitation of this property.
Raymond Watkins Apartments is situated on a single 2.31-acre parcel and was constructed in 1979. The property offers 111 one-bedroom, one-bathroom apartments and one two-bedroom, one-bathroom unit, historically reserved for an on-site courtesy staff member. Thirteen units are designated as handicap accessible dwelling units. Common area amenities include on-site leasing and management office, central laundry facility, community room areas and a community kitchen. Parking is provided via self-serve surface spaces on the property grounds.
- John Guy Prindle Apartments. Hunt Mortgage Group arranges a loan in the amount of $6.975 million to enable the acquisition and rehabilitation of John Guy Prindle Apartments. The property consists of a total of 112 age-restricted and affordable Section 8 subsidized multifamily units located at 80 East North Street, Ilion, New York. The loan term is 35 years.
John Guy Prindle apartments was built in 1979 and is situated on a single 2.44-acre parcel of land. The facility offers 111 one-bedroom, one-bathroom apartments and one two-bedroom, one-bathroom apartment that is also historically reserved for on-site courtesy staff member. Thirteen units are designated as handicap accessible dwelling units. Property amenities include on-site leasing and management office, central laundry facility, community room areas, community kitchen as well as an exterior gazebo sitting/picnic area. Parking is provided via self-serve surface spaces on the property grounds.
The total rehab budget equates to approximately $3.3 million for Raymond Watkins Apartments and $3 million for John Guy Prindle Apartments. “Both properties are in in good condition and well maintained considering their age,” noted Tim Hoppin, Director at Hunt Mortgage Group. “The renovation work will be completed as an ‘in place’ rehab with no tenant displacement.”
The rehab will encompass concrete work, parking lot overlay, landscaping embellishments, new signage, full roof replacement, new handicap vestibule door system at one entry, full kitchen cabinetry/countertop replacements, new entry and individual interior unit doors, painting of all common areas and unit interiors, among other improvements, including a variety of external upgrades.
The borrower was awarded tax exempt bond volume cap and an allocation of 4% Low Income Housing Tax Credits and will recapitalize both assets for the long term investment horizon with FHA insured financing. Both properties have historically operated with the benefit of a Section 8 Housing Assistance Payment (HAP) Contract, and will continue to do so going forward. In conjunction with the application submissions, the borrower submitted a request for a new 20-year HAP Contract on both properties.
“The borrower is a seasoned affordable multifamily investor and since inception has been involved in the development of over 90 multifamily and elderly affordable housing communities, generally utilizing tax exempt and/or LIHTC financing,” added Hoppin. “There is a high demand for housing in the various New York cities. We were pleased to play a role in this deal to help preserve much needed quality affordable housing in the local community.”
“This is a great example of how 4% Low Income Housing Tax Credits and Private Activity Bonds are utilized to ensure long term affordability for residents in need of stable housing,” concluded Hoppin.
The community and residents are serviced with full-time professional property management and maintenance staff, landscaping, pest control and trash removal services. In addition, community residents also enjoy the benefit of an on-site services coordinator that is funded via federal grant funding program.
Raymond Watkins Apartments is located within the historic downtown neighborhood of Saratoga Springs in the central portion of Saratoga Springs. Saratoga County is located in the northeast section of the state. John Guy Prindle Apartments is located in Ilion, New York which is situated in the north central section of the state, approximately 82 miles southeast from Albany and with Syracuse located 69 miles to the west.