BOSTON & KNOXVILLE, Tenn.--(BUSINESS WIRE)--Rockport Mortgage Corporation, a leading national provider of FHA multifamily and healthcare financing, today announced it has provided $17 million for the acquisition and substantial rehabilitation of Pinnacle Park Apartments (formerly Arbor Place Apartments) in Knoxville, Tennessee. Originated by Dan Lyons, Managing Partner, and utilizing the HUD 221(d)(4) program, the complex debt structure includes the use of 4% Low Income Housing Tax Credits (LIHTCs), short-term tax-exempt bonds, and multiple tranche financing.
Pinnacle Park Apartments is a 200-unit low- and moderate-income housing community originally developed under the Section 236 Program in the early 1970s. In 1994 it was preserved as affordable housing under The Low-Income Housing Preservation and Resident Homeownership Act (LIHPRHA) for a term of 50 years, and was recapitalized in 2004 using LIHTCs. Aging systems and rehabilitation needs required the infusion of additional capital to preserve this important affordable housing resource.
Working collaboratively with Rockport and HUD, the borrower was able to obtain a Section 8 rent increase and approval of the creative financing structure under the Section 221(d)(4) Substantial Rehabilitation Program. The financing involved a multiple-tranche debt structure and leveraging the benefits of the increased NOI made available through a new 15-year PILOT and the approved Section 8 rents.
About Rockport Mortgage Corporation
Rockport Mortgage Corporation (“Rockport”) is a privately owned commercial mortgage banking firm founded in 1992 and located on the North Shore of Boston. Rockport specializes in providing FHA-insured loans to market-rate, affordable and senior housing communities and healthcare facilities through the Department of Housing and Urban Development (“HUD”), and has been approved under HUD’s Multifamily Accelerated Processing (“MAP”) program since the program inception in 2001.
The Rockport team works collectively to navigate the complexities of FHA/HUD-insured finance programs, developing strategic solutions to meet the diverse needs of our clients. For additional information on Rockport Mortgage Corporation please visit us at www.rockportmortgage.com.