NEW YORK, NY – Lument, the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, has provided an $8 million Freddie Mac unfunded forward commitment loan to the Delaware State Housing Authority (DSHA). The permanent financing will pay off construction and renovation debt for a portfolio of three properties.
Founded in 1968, the DSHA’s portfolio consists of more than 600 affordable units. The 106-unit portfolio being renovated is comprised of Holly Square, located in Middletown, Delaware, and McLane Gardens and Peach Circle, both in Smyrna, Delaware. The renovation project consists of substantial interior and exterior upgrades, as well as improved ADA compliance and accessibility for seniors.
“We were happy to provide low-cost permanent financing for this substantial renovation project,” said Josh Reiss, director at Lument. “Every transaction that improves the availability of high-quality, affordable housing is an important one, and this was no exception.”
The three properties will convert from public housing to Section 8-assisted affordable housing. Further, all 106 units will now feature 20-year housing assistance payments (HAP) contracts through the Rental Assistance Demonstration (RAD) program.
The three-property portfolio received an allocation of 4% low-income housing tax credits (LIHTCs) that will restrict units at affordable levels based on the area median income (AMI). Holly Square and Peach Circle will be reserved for seniors aged 62 and older, with McLane Gardens having general occupancy.
Since 2014, Reiss and the Lument team have financed nearly $900 million in RAD transactions totaling approximately 12,000 units.
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument 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, investment banking, and investment management solutions. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities. For more information, visit www.lument.com.