New York, NY — April 13, 2023 — Lument today announced the closing of a $14 million U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) Section 221(d)(4) loan and $34 million of tax-exempt cash collateralized bonds issued by the Cuyahoga Metropolitan Housing Authority (CMHA) to refinance and rehabilitate Carver Park Phase III, a 143-unit multifamily community in Cleveland, Ohio. The project will be redeveloped by The Finch Group for CMHA as sponsor. Lument Director Joey Hague led the transaction.
“With this FHA loan and tax-exempt financing, we were able to meet all of CMHA’s goals, closing the transaction within nine months,” said Hague. “The loan and tax-exempt bonds will fund substantial rehabilitation to the property that will strengthen and maintain much-needed affordable housing for the community.”
The loan and tax-exempt financing make up a portion of a larger overall $66 million redevelopment of the Carver Park development and Asset Management Project (AMP), containing 319 total units overall. Carver Park III is being redeveloped as part of the Rental Assistance Demonstration program and has strong commitments of support from HUD and CMHA.
“The opportunity to reinvest in affordable housing in this community is much needed and aligns with CMHA’s mission and vision,” said Jeffery K. Patterson, chief executive officer of the CMHA. “We are very pleased with the hard work put in by both Lument and the Finch Group that will continue improving the affordable housing opportunities in this community.”
Lument, a subsidiary of ORIX Corporation USA, is a national leader in commercial real estate finance and delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, real estate investment sales, investment banking, and investment management solutions. The company has approximately 600 employees in over 30 offices across the United States. Securities, investment banking, and advisory services are provided through Lument Securities, LLC, member FINRA/SIPC. Lument Investment Management, LLC, is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.