Fantini & Gorga has arranged $9.088 million in permanent financing on Danforth Heights Apartments, a 166-unit affordable multifamily property.
"We were delighted to be able to structure 35-year fixed-rate financing for this asset, locking in today's incredibly low rate for the next generation," said Joe Eddy, managing director at Fantini & Gorga. "Also, this property operates under two different affordability provisions, and our FHA-insured financing underwrites these easily, while providing a loan that amortizes fully over its 35 year term - so there's no interest rate risk, and no 'balloon risk,' ever. Moreover, the low debt service frees up cash flow for the property's long-term capital needs as well as for distributions."
Fantini & Gorga placed the loan with its correspondent MAP Lender, Eastern Mortgage Capital, using FHA mortgage insurance under the 223(f) program, which provides long-term, fixed rate non-recourse financing.
Danforth Heights Apartments, located at 48 Salem St., was constructed by its current owner in 1972 under the HUD 236 program. The property offers garden style apartments in an urban location, and is comprised of eight buildings situated on landscaped grounds with off-street parking. Danforth Heights has a mix of one, two, three and four-bedroom units in buildings of between two and six stories. The location in the West End of the city, near the Casco Bay Bridge, offers water views and is convenient to both downtown and the Old Port district.
Fantini & Gorga is one of New England's leading mortgage banking firms. Headquartered in Boston, Fantini & Gorga specializes in assisting its clients in arranging traditional debt, mezzanine, and equity financing for all commercial property types throughout the United States.