ST. LOUIS—Love Funding, a provider of FHA multifamily and healthcare financing based in Washington, D.C., has closed an $8.64 million loan for the rehabilitation and expansion of Gotham and Delmar Apartments, a historic apartment complex in St. Louis.
Love Funding Senior Director Robyn Cunningham of the St. Louis office, assisted by Director Adrian Hartman, secured the financing through the U.S. Department of Housing and Urban Development’s Section 220 loan insurance program for the construction or substantial rehabilitation of multifamily properties. The loan was structured with a two-tier lease pass-through structure to be able to take advantage of state and federal historic tax credits.
The transaction enables the property’s developers, Delmar Properties Management and Construction LLC, to obtain a fixed, low-rate, non-recourse loan for the period of construction and for a 40-year term once the buildings are completed.
Many of the improvements being made to the existing building will make apartment units and public spaces more energy efficient and help reduce residents’ monthly expenses.
Once completed, the Gotham and Delmar Apartment buildings will feature Energy Star appliances and light fixtures, heat-reflective roof shingles, insulated low-e glass windows, motion sensors for public-space lighting and building wrap on exterior walls to reduce air infiltration and reduce heat loss.
The renovation of the Gotham building will reduce its unit count to 54 apartment units from 66, while the new Delmar building will consist of 18 residential units and a number of first-floor commercial suites for office or retail use.