BOSTON and CLEVELAND – May 30, 2019 – Berkadia today announced the origination of $34.27 million in construction-to-permanent substantial rehabilitation financing for the Rock Island Portfolio, two properties in Rock Island, Illinois with 100 percent of the units covered by project-based HAP contracts. Managing Director Rick Price of Berkadia’s D.C. Metro office, Senior Director Gemma Geldmacher of the Boston office, and Senior Managing Director Mark Vogel and Director Dan Geuther of the Cleveland office together originated the two HUD 221(d)(4) loans on behalf of Cleveland-based Millennia Companies. The two deals closed simultaneously on April 24.
The construction loan features an interest-only construction period, a 40-year term with 40-year amortization and a 90 percent loan-to-value ratio. The Millennia-Rock Island Portfolio consists of two properties, Heather Ridge and Century Woods.
“We were pleased to help our client, Millennia, with the acquisition of these two affordable properties,” said Geldmacher. “As a result of this rehab, the units will be substantially renovated, and the residents will have access to services that they have not had in the past. Millennia is in the business of transforming communities, and this closing was the first step for these properties.”
Heather Ridge, located at 9500 14th St. West, and Century Woods, located at 1400 5th St., both feature two-, three- and four-bedroom floor plans. The renovations for both properties will include new flooring throughout their units, new windows and a new heating and cooling systems, as well as new kitchen cabinets, counter-tops and appliances. Community amenities will include a community park, a community room and a computer lab.