Columbus, OH Oct 27, 2016 – Working together to build better communities, RED Mortgage Capital, the mortgage banking arm of RED Capital Group, LLC, and National Church Residences coordinated a MAP and Lean closing for a refinance and renovation of Portage Trail Village, a property in Cuyahoga Falls, Ohio.
Portage Trail is a 13 story, 183 unit HUD Section 202 apartment community with occupancy restricted to heads of household age 62+ or handicapped. The property was acquired by National Church Residences in 1991 and is 100% Section 8 subsidized.
National Church Residences is a strong believer in helping seniors age in place – allowing for transition to assisted living when and if the time requires it for its residents. With that idea in mind, under the Assisted Living Conversion Program (ALCP) through HUD, renovations were done in 2009 to convert the first six floors of the building to Assisted Living (AL) units. Floors 7-13 of the building maintained the Independent Living (IL) status.
The $3.1M FHA MAP Financing, paired with a $1.06M FHA Lean Financing provides for rehabilitation of the building. The process was a unique coordination requiring the building to be divided into two separate condominium facilities. The rehab for the AL units was funded through the Lean program and the IL units were funded under the MAP program. In addition, National Church Residences was able to leverage additional equity from Low Income Housing Tax Credits (LIHTC) and a $1M subordinate loan from the Ohio Housing Finance Agency.
“National Church Residences is thrilled to partner with RED on the rehab of Portage Trail. Their expertise was extraordinarily valuable,” stated Matt Rule, Senior Vice President of Development for National Church Residence. “We are especially excited that the Portage Trail campus will continue to allow our senior residents to have the option to age in place in independent units and, if appropriate, allow them to transition to assisted living units without ever leaving behind their community of friends or the building.”
“We firmly believe in helping our partners build better communities and work hard to find creative ways to help them succeed. This was a unique opportunity for RED to utilize our experience in both the Affordable Housing and Seniors Housing to complete the transaction for our friends at National Church Residences,“ states Tracy Peters, Senior Managing Director for RED. “It is always a privilege to work with National Church Residences and we look forward to working with them for years to come.”
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