BOSTON, MA - Boston Capital Finance (BCF) announces the closing of a construction loan and a permanent loan for Gibson Ridge Apartments in Johnson City, Tennessee. The construction loan closed into the Boston Capital Intermediate Term Income Fund, a fixed-rate, construction financing fund, and will have a 24-month loan term. The permanent loan is a 24-month, fixed-rate forward commitment which closed into the Boston Capital Long Term Mortgage Fund. Gibson Ridge Apartments will have a 15-year loan term. Loan funding will occur upon construction completion and property stabilization.
"Boston Capital Finance is pleased to offer our developer partners a fixed-rate construction loan with a complementary fixed-rate forward permanent loan, allowing them to satisfy all their financing needs at one closing," stated Kevin P. Costello, Executive Vice President and Director of Institutional Investing at Boston Capital. "In addition to adding another outstanding property to Boston Capital's portfolio, Gibson Ridge Apartments will provide much-needed affordable housing to the residents of Johnson City."
Located on 18 acres, Gibson Ridge Apartments will include 100 units in five, three-story, garden-style buildings offering eight one-bedroom, 57 two-bedroom and 35 three- bedroom units. Units will feature central air conditioning, fully equipped kitchens and washers and dryers and will be available to families and individuals earning 50 and 60 percent of the Area Median Income (AMI). Development amenities will include a clubhouse with a kitchen, an onsite rental office, two parking spaces per unit and a playground.
In 2011, Boston Capital introduced two debt initiatives including the Boston Capital Long Term Mortgage Fund, a fixed-rate, forward permanent financing fund and the Boston Capital Intermediate Term Income Fund, a construction loan fund. The funds can be used together as well as independent of each other and are intended to be used in conjunction with Boston Capital's equity offerings.BCF originates, manages and services both funds that target construction and permanent lending opportunities on new construction or substantially rehabilitated LIHTC (Section 42) properties in which Boston Capital is the equity provider.
Boston Capital's investment in Gibson Ridge Apartments adds 100 units of affordable housing to its apartment portfolio. The construction of this property will generate more than $10.3 million in local income and will create approximately 150 jobs in the Johnson City area. To date, Boston Capital has invested in more than 3,100 units of affordable housing in Tennessee.
About Boston Capital Finance
BCF provides both construction and permanent mortgage financing on LIHTC properties syndicated by Boston Capital. BCF originates construction, permanent and construction/permanent loans in sizes between $1,000,000 and $11,000,000. BCF's previous fund, the Boston Capital Affordable Housing Mortgage Fund LLC, has fully invested its $115 million in capital in 36 loans. In addition to its debt products, Boston Capital provides equity for affordable multifamily housing developments and recently closed Boston Capital Tax Credit Fund XXXV, a $350 million fund. Boston Capital will launch Boston Capital Tax Credit Fund XXXVI in late February 2012.
About Boston Capital
Boston Capital, headquartered in Boston, MA, is a real estate investment and advisory firm specializing in tax advantaged investments in affordable multifamily housing, energy, film and economic development and equity investment in market rate apartment communities. Boston Capital's holdings include nearly 2,400 multifamily apartment properties in 49 states and the District of Columbia, constituting nearly 157,425 apartments with a development cost in excess of $13.4 billion. Boston Capital is the largest owner/investor of apartment properties in the US.