GRAND FORKS, N.D. — Karen Dubrosky and Frank Hogan of the Minneapolis office of Colliers Mortgage and Colliers Securities, respectively, have closed a $10.9 million HUD loan for the acquisition and rehabilitation affordable housing portfolio in Grand Forks.
Located near the Red River, which forms the border between Minnesota and North Dakota, the portfolio totals 182 units of affordable housing across three properties.
University Square includes 60 multifamily units, Columbia Square East includes 50 seniors housing units and Columbia Square South includes 72 multifamily units.
All units are covered by project-based Section 8 HAP Contracts. As part of the transaction, the project will receive $13.7 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. Colliers Securities LLC, an affiliate of Colliers Mortgage LLC, underwrote the bonds.
As part of the transaction, the borrower, which is controlled by The Schuett Cos., will acquire the distressed assets and complete the rehabilitation project.
The loan carries a 40-year term/amortization.