MINNEAPOLIS, MN - Karen Dubrosky and Frank Hogan of the Minneapolis office of Colliers Mortgage and Colliers Securities, respectively, closed a $10.9 million HUD loan for the acquisition and substantial rehabilitation of the Grand Forks Portfolio in Grand Forks, North Dakota.
The Portfolio is a 182-unit affordable multifamily and senior scattered sites project consisting of three (3) properties. University Square includes 60 multifamily units; Columbia Square East includes 50 senior (62+ Head-of-Household) units; and Columbia Square South includes 72 multifamily units. All 182 units are covered by Project-Based Section 8 HAP Contracts.
As part of the transaction, the project will receive $13.66 million ($75,000 per unit) in renovation work, including dwelling unit and community space upgrades. In addition to the HUD-insured first mortgage, the project utilized Low Income Housing Tax Credits, Housing Incentive Funds (HIF) from the North Dakota Housing Finance Agency (NDHFA), and Tax-Exempt Bonds. The Bonds were underwritten by Colliers Securities LLC, an affiliate of Colliers Mortgage LLC.
As part of the transaction, the Borrower, which is controlled by The Schuett Companies, Inc., will acquire the distressed assets, complete the substantial rehabilitation, and stabilize operations, while improving the living conditions for the low-income residents. The project will also be managed by The Schuett Companies, Inc., as the company continues to expand its ownership and management of properties outside of Minnesota, to include those throughout the Midwest.
The loan carries a 40-year term/amortization and was arranged for borrower, Schuett Grand Forks, LP.
About Colliers Mortgage: Colliers Mortgage, part of Colliers | U.S., is a full-service, nationwide mortgage banking firm, approved FHA MAP and LEAN lender and a Fannie Mae Delegated Underwriting and Servicing (DUS®) lender, specializing in providing access to federal agency loan programs for the acquisition, refinance, construction, or rehabilitation for a multitude of property types. Colliers Mortgage also holds designation as a lender/partner with the USDA under the Community Facilities Guaranteed Loan Program. Additionally, as an approved Ginnie Mae seller/servicer, they provide loan servicing for their mortgages and currently service in excess of $10.0 billion of loans.
About Colliers: Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 63 countries, our 17,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 27 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of 20% for shareholders. With annual revenues of $4.5 billion and $81 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn