Prudential Mortgage Capital Company has provided a $62 million loan for the acquisition and renovation of Squire Village Apartments, a 379-unit affordable multifamily property in Manchester, Connecticut.
The 16-year, fixed-rate loan, made through the Freddie Mac Tax-Exempt Loan (TEL) program, features three years of interest-only followed by a 35-year amortization period. An index lock fixed the 10-year treasury rate prior to closing, according to a statement from the lender.
The borrower is an affiliate of the Rose Affordable Housing Preservation Fund, a real estate equity fund seeded by TIAA-CREF and Jonathan Rose Companies to acquire, preserve and increase the efficiency of affordable multifamily properties across the US. In this case the property, built in 1972, is part of the project-based Housing Assistance Program (HAP) contract covering 88 percent of its units.
“The transaction highlighted the flexibility and speed of the Freddie Mac TEL program,” said Evan Williams, a principal with PMCC’s New York office who led the transaction, in a statement. “The loan closing took place less than seven weeks after signing the loan application, which speaks to the strength of borrower and the Freddie Mac affordable housing team.”
Rose is also working closely with the Manchester Housing Authority, the Connecticut Housing Finance Agency and the Department of Housing and Urban Development to finance and complete the preservation project.