Hunt Real Estate Capital announced today that it has provided a loan in the amount of $7.83 million to refinance a Section 8 Elderly Affordable property located in Worcester, Massachusetts.
Emanuel Village Apartments is a 75-unit elderly (age 62+) head of household and disabled Section 8 affordable multifamily property located at 59 Evelyn Street.
The community was initially developed under the Section 202 program. The Section 202 financing was retired in 2005 with a refinance under the Section 223(f) program, and that loan was retired when the borrower acquired the asset. The new Section 223(f) loan has a 35-year term.
“The borrower acquired Emanuel Village Apartments in mid-2018 and has secured the new loan to retire existing short-term bridge financing and recapitalize the asset for the long term with FHA insured financing,” commented Suzanne Cope, Director at Hunt Real Estate Capital.
“The property has historically benefited from a project based Section 8 HAP Contract that covers all 75 of the units,” added Kevin Deegan, Director at Hunt Real Estate Capital. “The HAP Contract was assigned and assumed by the borrower upon acquisition, and they have applied for and received a new 20-year HAP Contract.”
Emanuel Village was built in 1991 and is situated on a 3.83-acre parcel of land. The unit mix includes 19 efficiency/one-bathroom apartments and 56 one-bedroom, one-bathroom units.
Property amenities include on-site leasing and management offices, a central laundry facility, a community room area with kitchen and billiard table on the first floor, lounge room on the fourth floor, and a three-season porch that was added in 2001. The borrower plans to add a business center to the fourth floor lounge area, an exercise facility within the large community room on the first floor, and an outside gazebo.
“When Americans discuss the affordable housing crisis or the lack of modern, rent-subsidized apartments, we tend to view the problem through the lens of new affordable development. However, this property highlights the importance of affordable housing preservation,” added Deegan.
The property operates at capacity in terms of historical occupancy and currently has a two-year wait list. Parking is provided via 59 self-serve surface spaces with 11 designated handicap accessible spaces.