MINNEAPOLIS, MINNESOTA (September 11, 2019) – NorthMarq Minneapolis’ Michael Padilla arranged the $12.75 million refinance of St. Paul Preservation Portfolio. The portfolio contains a combined 172-unts.
– 16-year term (with 2-years interest only)
– 35-year amortization schedule
– NorthMarq and Freddie Mac, funded the loan under the Immediate 9% loan program secured by a first lien on the portfolio.
– Preservation Project One, LLC represented the borrower.
“The borrower has been awarded a nine percent tax credit allocation in association with this project. The $1,900,000 rehab is anticipated to take 12 months. The rehab will be occuring with tenants in place.”
– Michael Padilla
– All units at the properties will be restricted to 60% AMI levels per the LIHTC LURA.
– The portfolio contains five properties
– The property will operate under Minnesota’s LIRC 4d tax program.
– The LIRC program provides a class rate reduction down to 0.75% from 1.25%, in property taxes for qualifying low-income units. The LIRC requires the LURA to be in place in order to receive the 4d tax benefits. A new LIHTC LURA is being drafted and will be recorded by the end of 2019 so that the application for 4d tax benefits can be completed by the March 31, 2020 deadline.
This transaction was featured in REJournals.