DTM Real Estate has obtained a $15.5 million HUD loan from Merchants Capital for the construction of Lakeshore Manor, a 206-unit, 100 percent project based voucher-supported housing development in East Chicago, Ind. The apartments will be reserved for seniors age 62 and over and/or disabled tenants, earning 60 percent of the area median income.
The Merchants Capital financing was only one of the project’s several development funds. Merchants Bank of Indiana, the parent company, funded a $13.5 million equity bridge loan, while the property’s equity investor, Cinnaire, provided a $21.7 million LIHTC investment. The city of East Chicago and the East Chicago Housing Authority provided both financial support and the land for the project.
DTM broke ground on the $51 million project in October, with delivery expected in 2024. Upon completion, the community will encompass two four-story buildings with one- and two-bedroom apartments. The units will have ceiling fans, central air conditioning and walk-in closets, but also automatic shower temperature limit controls, interior corridor handrails and an emergency call system in every unit. A total of 12 apartments will be designed as hearing-impaired, fully accessible units that will comply with the American with Disabilities Act (ADA) and Uniform Federal Accessibility Standards (UFAS) requirements.
Part of the area’s redevelopment project
Lakeshore Manor is taking shape on the corner of 136th and Main Street, as a replacement for the John B. Nicosia senior building. The upcoming community is part of the North Harbor Redevelopment Area project, which aims to improve public spaces and support the long-term sustainability of the area.
The development site is just east of Route 20 and Interstate 90, which provide easy access to downtown Chicago. There are several retail spaces, dining options, schools and entertainment venues in the proximity. Saint Catherine Hospital, Chicago International Airport and Purdue University Northwest are within a 5.8-mile radius from the site.
Merchants Capital has recently provided two loans for affordable housing development: a $5.8 million HUD/FHA 221d4 loan for a 57-unit affordable senior community in Chicago and a $31 million construction loan for a 200-unit affordable multifamily project in Charlotte, N.C.
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