BOSTON, MA - Boston Capital is investing in the rehabilitation of Walworth Apartments, a 139-unit development in Wisconsin consisting of two sites, Gilbert Court Apartments in Elkhorn and Havenwood Apartments in Lake Geneva. Located nine miles apart, the apartment communities will serve seniors and families earning 60 percent or less of the Area Median Income (AMI).
In addition to its equity investment in Walworth Apartments, Boston Capital Finance (BCF) provided permanent loan financing, an 18-month, fixed-rate forward commitment which closed into the Boston Capital Long Term Mortgage Fund. Loan funding will occur upon construction completion and property stabilization. The loan will carry a 15-year term.
The rehabilitation of this property will generate more than $5 million in local income and create nearly 60 jobs in the Elkhorn and Lake Geneva areas. Boston Capital's investment in Walworth Apartments adds 139 units of affordable housing to its apartment portfolio. To date, Boston Capital has invested in nearly 3,000 units of affordable housing in Wisconsin.
"Boston Capital has built a reputation over the past 38 years of providing our developer partners the best in equity financing and on-time closings," stated Kevin P. Costello, Executive Vice President and Director of Institutional Investing at Boston Capital. "Through the Boston Capital Long Term Mortgage Fund, our partners can satisfy their permanent financing needs at one convenient closing."
Gilbert Court features 48 one-bedroom units in a two-story building with an elevator. Havenwood Apartments features 71 one-bedroom, 12 two-bedroom and eight three-bedroom units located in four two and three-story buildings. Both developments will feature amenities including a fitness center, computer room, community room, picnic area, storage lockers and a library.
Renovations will include the installation of new roofs, siding, windows and doors and the replacement of all mechanical systems. Units will receive new appliances, kitchen cabinets, countertops, bath vanities, lavatories, windows and flooring.
About Boston Capital Finance:
Boston Capital Finance (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. In 2011, Boston Capital introduced two new debt initiatives including the Boston Capital Intermediate Term Income Fund, a construction loan fund and the Boston Capital Long Term Mortgage Fund, a fixed-rate, forward permanent financing 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 construction, permanent and construction/permanent loans in sizes between $1,000,000 and $18,000,000. 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 Corporate Fund XXXVI, a $180 million equity fund, in October 2012. Boston Capital recently launched Corporate Fund XXXVII, a $200-$225 million equity fund which is expected to close in 2013.
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 and energy, 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 $14.3 billion. Boston Capital is the largest owner/investor of apartment properties in the United States.