Lowell, Mass. Rockport Mortgage has completed the closing of a $42.4 million HUD Section 223(f) refinance loan. The transaction will keep the rental housing complex affordable for 39 years.
Market Mill Apartments is a 230-unit affordable housing community serving seniors and families located at 246 and 256 Market St. The development, located in the city’s downtown historic district, has been designated a conservation area. opportunity and consists of a five-storey elevator. building for the elderly and a four-story building with an elevator for families. The two adjacent buildings offer one and two bedroom units. The property’s location serves renters well, as it is conveniently located for shopping, dining, and public transportation.
Peabody Properties manages the property on behalf of the owner, Market Mill Associates.
The HUD 223(f) loan, with a fixed interest rate of 2.5%, has an amortization period of 35 years. As part of the transaction, the owner entered into a new 20-year Mark-Up-To-Market Section 8 contract with HUD at loan closing. The new Section 8 contract will require the owner to renew the contract until 2061.
“Market Mill is a vibrant community, and we are pleased to have worked with Rockport Mortgage to complete this refinance.” said Melissa Fish-Crane, director and chief operating officer of Peabody Properties. “Affordability is a key factor in maintaining successful long-term rentals. These efforts will not only help preserve these rentals, but will also allow us to supplement them with a wide range of social and welfare benefits in the decades to come.
“The demand for safe and affordable housing in the town of Lowell remains extremely high, especially for a growing senior population,” said Dan Lyons, Managing Partner of Rockport Mortgage. “In places where there are a limited number of new developments planned, HUD’s preservation programs allow owners to significantly extend the useful life of their properties, improve the quality of life for residents and, at the same time time, to ensure that these properties remain affordable for years to come. We are very pleased to be working again with the leaders of Market Mill Associates and Peabody Properties to ensure that this valuable multi-family housing asset remains affordable for the next 39 years. .