Source: Walker & Dunlop / #Multifamily #Finance
BETHESDA, MD - Walker & Dunlop, Inc. announced that it recently provided $37,165,100 in FHA Section 221(d)(4) financing to convert 777 Main Street, a vacant 26-story office tower in Hartford's Central Business District, into Class A apartments. The property is the centerpiece of state and local efforts to promote urban living and revitalize Hartford's downtown.
Constructed in 1967 as the headquarters of Hartford National Bank, 777 Main Street was designed by renowned architect Welton Becket, who designed the iconic Capitol Records tower in Hollywood. The historically significant building is included on the National Register of Historic Places, enabling the developer, Becker + Becker Associates, to obtain federal and state historic tax credits to help finance the project. Additionally, the state's Capital Region Development Authority and Department of Housing invested more than $21 million behind Walker & Dunlop's new first mortgage loan to support the redevelopment. Twenty percent of the apartments are set aside as affordable housing for very low income residents.
"HUD is proud to be a partner in the historic and sustainable redevelopment of 777 Main," said HUD New England Regional Administrator, Barbara Fields. "We congratulate Walker & Dunlop and everyone involved in this project for their efforts to deliver much needed affordable and market rate housing in Hartford, close to jobs and transit."
Walker & Dunlop Senior Vice President Todd Trehubenko led the team that structured the financing. He commented, "It was a pleasure to work closely with our partners at HUD and many others to help deliver such an important project for the city of Hartford. This transaction, while very complex, shows the unique role that FHA financing can play in the market to stimulate apartment construction and neighborhood development."
Becker + Becker Associates' design for the apartment property meets LEED Silver building standards and incorporates a hydrogen fuel cell to power the site. The fuel cell qualifies 777 Main Street for Low Emissions Renewable Energy Credits (LRECs), which were incorporated into the new financing provided by Walker & Dunlop. This transaction marks the first time HUD has agreed to recognize these credits through its FHA mortgage insurance program.