Centrant Community Capital is pleased to announce the closing of two new affordable housing loans. Together, these loans finance 120 affordable apartment units for seniors and families. Funding for the loans was provided via commitments from over twenty of Centrant’s member banks.
Centrant Perm Loan: $1,472,000
18 year fixed rate / 30 year amortization
Prosperity Ridge is a new 60-unit affordable housing development located in Kannapolis, NC. The property consists of 40 one-bedroom units and 20 two-bedroom units for seniors. The community offers on-site management, a multipurpose room, outdoor picnic areas and raised bed garden plots for resident use.
This $8.4 million project received a 2017 Low Income Housing Tax Credit (LIHTC) allocation from the North Carolina Housing Finance Agency (NCHFA). Additional funding support includes NCHFA Integrated Supportive Housing Program (“ISHP”) funds, and HOME/ CDBG funds from Prosperity Unlimited, Inc., Cabarrus County, and the City of Kannapolis.
Centrant Refi Loan: $1,075,000
13 year fixed rate / 18 year amortization
To help the borrower take advantage of current low interest rates, Centrant Community Capital structured this refinance of one of its own affordable housing loans and an existing subordinate loan.
At the request of the equity investor, the new loan maintains near-level debt payment and net cash flow. The borrower benefits from an interest rate reduction of nearly 275bp, and accelerated debt repayment from the shortened amortization period.
Originally placed in service in 2014, the property contains 12 one-bedroom units, 36 two-bedroom units and 12 three-bedroom units that are affordable to households earning between 30-60% of area median income.
About Centrant Community Capital
With support from its 93 member banks, Centrant Community Capital offers loans to finance affordable multifamily housing across six Southeastern states. By participating in our loans, members receive CRA credit, an attractive return and loan growth, with minimal risk or overhead expense.
For affordable housing developers, Centrant offers a focused, flexible and competitive source of conventional permanent financing. Our lending program is specifically designed to support affordable housing finance needs.