Mini-Permanent Loan for Operating Properties

NC’s Mini-Permanent Loan product provides financing for acquisition, refinancing, property improvements, and “green” improvements at operating properties (residential, commercial and mixed-use). Mini-Permanent Loans can also be used to assist NWOs in purchasing the general partner and limited partner interests to assist in the restructuring of Tax Credit projects.

Mini-permanent Loans may be in an amount of up to $7 million, with larger amounts (up to $10,000,000) available through participation with other CDFIs. Terms can be as long as 7 years with monthly payments based on a 30-year amortization schedule. On a case-by-case basis, up to 24 months payments may be structured as interest-only. The interest rate is as low as 5% (fixed). Loans must be secured by acceptable collateral, with the additional benefit that up to $200,000 of the loan may be unsecured. Mini-Permanent Loans can be placed in a subordinate position to a first mortgage lender. The Loan to Value (LTV) ratio for Mini-Permanent Loans can be as high as 95%.

Hardesty Renaissance Building

Asian Americans for Equality for Hardesty Renaissance

Location: Kansas City, MO

Loan Amount: $5,900,000

Loan Type: Mini-Permanent Loan for Operating Properties

Project Description: This is AAFE’s 4th loan with NeighborWorks Capital. AAFE requested a $6,500,000 site acquisition and predevelopment loan for 36 months at 5%, to acquire the remaining piece of an 18 acre redevelopment site in Northeast Kansas City, MO. Building 1 will provide up to 300 apartments for low-income households and 200 apartments for students and faculty. Later development stages will include business incubator space and commercial space for local nonprofits focused on community revitalization. AAFE has executed a Memorandum of Understanding with Northwest Missouri State University (NWMSU) for the university to lease an adjacent property (Building 11) to use for classrooms, offices, light manufacturing, laboratories, and a 70,000 SF rooftop “farm.”

Midway Apartments

Federation of Appalachian Housing Enterprises (Lead Lender) for Midway Apartments

Location: Midway, KY

Loan Amount: $376,800

Loan Type: Mini-Permanent Loan for Operating Properties

Project Description: This is NC’s 2nd participation loan with Federation of Appalachian Housing Enterprises (FAHE). This $376,800 mini permanent loan will refinance Midway School Apartments, a 24-unit affordable rental housing development for seniors located in Midway, Kentucky. The loan will be originated and serviced by FAHE. The loan will have a term of 7 years and a 30 year amortization schedule, with a fixed interest rate of 5.75%.

Paulsboro Plaza

New Jersey Community Capital (Lead Lender) for Paulsboro Plaza

Location: Paulsboro, NJ

Loan Amount: $1,589,123

Loan Type: Mini-Permanent Loan for Operating Properties

Project Description: This is NC’s 3rd loan with New Jersey Community Capital (NJCC). This $1,589,123 construction/mini-permanent loan will be used for the redevelopment of the Paulsboro Plaza shopping center in Paulsboro, Gloucester County New Jersey. The project is being undertaken by CDIP-Paulsboro Summit, LP, a partnership of two for-profit companies: Lindsay-Ore, LLC and Bancroft Construction Company. NJCC is strongly supportive of the project, which is consistent with their social impact goals and views the redevelopment of the shopping center as a critical step in revitalizing the downtown business district of a community that is home to a large population of low- and moderate-income households. The project also presents NJCC with an opportunity to expand their presence in southern New Jersey, whereas most of their lending historically has focused in central and northern parts of the State.

Lincoln Garden Apartments

Hope Enterprise Corporation/Hope Federal Credit Union for Lincoln Gardens

Location: Jackson, MS

Loan Amount: $800,000

Loan Type: Mini-Permanent Loan for Operating Properties

Project Description: This is NC’s 1st loan with Hope Enterprise Corporation (HEC). This $800,000 mini-permanent participation loan (NC’s share of the loan is 26.2% of the total $3,050,000 loan) was used to refinance Lincoln Garden Apartments, a 100-unit, general occupancy affordable rental housing development in Jackson, Mississippi. The loan will be originated and serviced by Hope Federal Credit Union (HFCU), which is HEC’s affiliated credit union. HEC will take-out NC’s share of the loan within the first 7 years. There is an extended Land Use Restriction Agreement (LURA) in place through 2051 that restricts occupancy to residents earning 50% or less of the (AMI) Area Median Income.

Glen Rock Depot

Mountain Housing Opportunities for Glen Rock Depot

Location: Asheville, NC

Loan Amount: $1,158,000

Loan Type: Mini-Permanent Loan for Operating Properties

Project Description: This is NC’s 4th loan with Mountain Housing Opportunities (MHO). This $1,158,000 mini-permanent loan will be used to refinance maturing debt on the commercial component of the Glen Rock Depot, a mixed use project located in Asheville, NC. Glen Rock Depot includes a residential component of 60 affordable rental units, and a commercial component comprised of 9,100 square feet of commercial space in seven separate units and is located on the street level of this 4-story structure. MHO has established a condominium at the Glen Rock Depot to divide ownership of the residential and commercial components to facilitate financing.

Office Space Refinancing

Mutual Housing Association of Greater Hartford for Office Space Refinance

Location: Hartford, CT

Loan Amount: $404,000

Loan Type: Mini-Permanent Loan for Operating Properties

Project Description: This is NC’s 5th loan with Mutual Housing of Greater Hartford (MHAGH). This $404,000 mini-permanent loan will be used to refinance the existing debt on MHAGH’s office building located in Hartford, Connecticut resulting in significant debt service savings. Built in 1890 and moderately rehabbed in 2006, the 4,680 SF building provides the office space for MHAGH operations as well as providing the conference space for board and staff meetings.

Connell Apartments

South County Housing for Connell Apartments, Skeels Hotel and Ford Apartments

Location: Gilroy, Morgan Hill & Watsonville, CA

Loan Amount: $3,410,000

Loan Type: Mini-Permanent Loan for Operating Properties

Project Description: This is NC’s fourth loan to South County. NC’s loan was used to refinance three multifamily rental properties owned by South County: Connell Apartments, Skeels Hotel and Ford Apartments. Prior to NC’s refinancing, the properties were subject to a single “blanket” mortgage from a regional bank. South County approached NC to secure individual property financing to repay the existing loan at a rate that provided needed cash flow to do deferred repairs. NC provided a separate mini-permanent loan for each property, with term of 7 years, 30 year amortization and interest rate of 5.75%. Connell Apartments includes a total of 28 units of affordable rental housing located in Gilroy, Santa Clara County, California. Skeels Hotel includes a total of 13 units of affordable rental housing and over 4,000 square feet of commercial space currently occupied by a restaurant located in the City of Morgan Hill, Santa Clara County, California. Ford Apartments includes a total of 10 units of affordable rental housing located in Watsonville, Santa Cruz County, California.

Scattered Site Rental Property Photo

NJCC and CAPC for Multifamily Scattered Site

Location: Essex, Hudson, Middlesex and Union Counties, NJ

Loan Amount: $3,500,000

Loan Type: Mini-Permanent Loan for Operating Properties

Project Description: This is NC’s first involvement with New Jersey Community Capital (NJCC), which has a very active real estate development affiliate, Community Asset Preservation Corporation (CAPC) who is undertaking the project. NC’s participation in the NJCC’s $7,000,000 loan for this project. Loan proceeds will be used to refinance existing short-term acquisition/construction loans for occupied scattered-site rental properties located primarily in Essex, Hudson, Middlesex, and Union Counties, New Jersey. A total of 60-75 units will be funded by the loan. Conventional financing and/or unit sales to homebuyers are the expected take-out sources.

West Market Apartment Photo.

Housing Partnership, Inc. for 4618 West Market

Location: Louisville, KY

Loan Amount: $550,000

Loan Type: Mini-Permanent Loan for Operating Properties

Project Description: This is NC’s first loan to a project sponsored by Housing Partnership, Inc. (HPI) located in Louisville, Kentucky. This $550,000 mini-permanent loan enabled HPI to acquire West Market Apartments, an 11-unit rental apartment complex built in 2008. The property is on the western end of downtown Louisville, Kentucky and was acquired from a local bank.

Stewart Pines Senior Living Photo

Nevada HAND for Stewart Pines

Location: Las Vegas, NV

Loan Amount: $500,000

Loan Type: Mini-Permanent Loan for Operating Properties

Project Description: NC’s first loan to Nevada HAND (NHI) is a $500,000 mini-permanent loan for the Stewart Pines Senior Living apartment complex at a rate of 5.75%. Loan proceeds repaid a first mortgage with a higher interest rate. This 72 unit rental apartment complex for seniors was originally constructed using Low Income Housing Tax Credits and placed in service in 1999.

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