Recent Purchase Helps Restore Historic New Orleans Property Into Affordable Seniors Housing
|Name:||The Redemptorist Apartments|
New Orleans, Louisiana
|Loan/Deal Type:||Freddie Mac 9% LIHTC Mortgage|
|Number of Units:||107 units|
|Loan Amount:||$2.6 million|
More than four years after Hurricane Katrina, Freddie Mac continues to help New Orleans rebuild. We recently purchased a $2.6 million loan from Oak Grove Capital that allowed its borrower, Historic Restoration, Inc. (HRI) to convert an unfunded low-income housing tax credit (LIHTC) forward commitment to permanent financing. The loan is secured by the Redemptorist Apartments, a three-building, 107-unit, targeted affordable housing, age-restricted property.
The historic buildings, built between 1880 and 1920, were devastated by the 2005 hurricane and sat vacant. HRI purchased the property and secured the forward commitment in 2007, and completed renovation in 2008. By April 2009, the property was 90 percent occupied again. The transaction benefited from the Freddie Mac 9% LIHTC Forward Commitment.
Freddie Mac displayed a tremendous amount of flexibility, knowledge, and patience in making this financing a reality.
executive vice president, Oak Grove Capital
"The financing was very complex and utilized a variety of sources in order to become feasible, including low-income housing tax credits, historic tax credits, long-term ground lease, property tax abatement, subordinate financing, and a long-term Section 8 contract,” said Timothy Leonhard, Oak Grove Capital executive vice president. "Freddie Mac displayed a tremendous amount of flexibility, knowledge, and patience in making this financing a reality, and acted as the catalyst in bringing this landmark back from ruin to a fantastic new community to house seniors in one of New Orleans’ most historic neighborhoods."
The Freddie Mac 9% LIHTC Mortgage provides cash for targeted affordable multifamily development projects, whether under construction or undergoing substantial rehabilitation, and can reduce the amount of borrowed debt to allow more affordable rents.
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