GLOUCESTER, Mass.--(BUSINESS WIRE)--Rockport Mortgage of Gloucester, MA, announced today the closing of a $26.6 million, HUD 221(d)(4) substantial rehabilitation loan in Meriden, CT.
Yale Acres is a 162 unit affordable housing community originally constructed in 1952 by the Meriden Housing Authority (“MHA”). The borrower, Yale Acres LLC of Meriden, CT, is an affiliate of Maynard Road Corporation, a non-profit founded by the MHA to develop and maintain affordable housing through public-private partnerships. An affiliate of Meriden-based Carabetta Companies will act as the general contractor on the redevelopment.
Proceeds of the approximately $26 million loan, in connection with proceeds received from the sale of 4% low income housing tax credits and a $5.7 million dollar loan from the State of Connecticut Department of Housing, will be used to rehabilitate 155 of the existing units as well as fund construction of an additional 7 units of affordable housing.
The planned redevelopment of Yale Acres will be completed over a period of 2 years at a total cost of approximately $53 million. The substantial rehabilitation will include installations of a closed-loop geothermal heating and cooling system as well as solar photovoltaic electricity and solar thermal hot water systems.
“We’re very proud to partner with Maynard Road and the Meriden Housing Authority on this transaction as well as continue our long-standing relationship with The Carabetta Companies”, noted Dan Lyons, Managing Partner of Rockport Mortgage. “It’s a complicated overall financing structure and the closing of this loan represents considerable effort and collaboration between multiple parties. Ultimately, the successful redevelopment of Yale Acres will add much needed affordable housing inventory to the Meriden area, nearly doubling the number of currently available units at the property.”
“It was a pleasure working with a very dedicated Rockport Mortgage financing team,” said Rob Capelletti, Executive Director of the MHA. “They managed a difficult process over a period of several years to help us achieve our goals and close a complex multi-source funding transaction.”
About Rockport Mortgage Corporation
Consistently ranked as one of the top FHA lenders in the country for multifamily loan closings, Rockport Mortgage has aided clients in successfully structuring and executing strategic financing solutions for both multifamily and healthcare facilities in 38 states across the nation, totaling over $7.5 billion in loan proceeds. For further information please contact Tony Roberts at (978) 283- 2038 or visit us at www.rockportmortgage.com