MINNEAPOLIS, MN - Dougherty Funding LLC has closed a $12.7 million tax credit equity bridge loan as part of Aeon’s Minneapolis Portfolio Preservation Project. The Borrower will utilize 4% Low Income Housing Tax Credits (“LIHTC”) as well as Federal and State Historic Tax Credits (“HTC”) as a portion of the equity required for the acquisition and renovation of the property portfolio.
The purpose of the subject Loan is to provide bridge financing until receipt of the capital contributions from the sale of the LIHTCs and the Federal HTCs, as well as the receipt of State HTC proceeds. The project includes substantial renovation of ten affordable projects located in the Elliot Park and Loring Park neighborhoods of Downtown Minneapolis. As part of the project, 566 existing units will be renovated and 16 new units will be constructed. Dougherty Funding LLC serves as lead lender and servicer for the loan, arranged for Aeon.
The renovations focus on increasing energy efficiency, enhancing security, and repairing or replacing mechanical systems. This includes replacing windows, heating systems, and plumbing fixtures; repairing roofs; and updating kitchens, bathrooms, and flooring. The renovations will incorporate Aeon’s standards for sustainability and historically sensitive design.
About Dougherty Funding LLC: Since 1996 Dougherty Funding LLC has offered a broad range of commercial finance solutions to real estate developers and corporations nationwide. Dougherty Funding serves as the lead lender in all of their transactions and funds each financing by selling loan participations to an extensive network of banks and institutional lenders throughout the U.S.
For more information, please visit www.doughertymarkets.com