St. Paul, Minn.-based Oak Grove Capital has originated a $59.5 million Immediate Funding Fannie Mae NIBP Bond Credit Enhancement loan for the acquisition and renovation of Parkway Gardens by New York-based Related Companies.
Parkway Gardens is an existing 694-unit affordable-housing community on Chicago's South Side that consists of 11 mid-rise buildings and 24 garden buildings.
Utilizing a Fannie Mae NIBP Bond Credit Enhancement financing, Related Companies plans to reinvest $55,000 per unit in renovation cost.
"This transaction is particularly meaningful, because it preserves and renovates hundreds of affordable family units that were at risk of being lost due to an expiring Section 8 use agreement," says Bob Simpson, vice president of Fannie Mae's affordable multifamily mortgage business. "By combining various public and private resources – such as NIBP Bonds, low-income housing tax credits, federal historic tax credits, real estate tax incentives and a new 20-year Section 8 contract – we were able to assure the continued viability of this important affordable housing asset for the next 30 years."
