Mirrorton Apartments
LAKELAND, FL—Walker & Dunlop has structured $50.2 million in financing for Mirrorton Apartments, a 305-unit multifamily development in the downtown quarter here. Because Mirrorton Apartments will provide much-needed workforce housing, it is subject to tax incentives awarded by the City of Lakeland and the Lakeland Community Redevelopment Agency. The property is also located within the bounds of a designated opportunity zone census tract.
Walker and Dunlop directors Jeremy Pino and Livingston Hessam tell GlobeSt.com that their firm has a longstanding relationship with Framework Group and recently completed a HUD221(d)(4) loan with their team.
"When they came to us again with an opportunity zone assignment, we knew it would be a great fit for HUD's new construction program because it couples 40-year financing with the development loan. It's a streamlined solution that pairs perfectly with the long-term hold requirements for opportunity zone benefits."
"HUD's 221(d)(4) loan program is a perfect fit for revitalizing or developing apartments and mixed-use projects within opportunity zones," Pino said. "Combining both construction and permanent financing into a single, fixed-rate loan, the 221(d)(4) loan product is best suited for a long-term hold strategy. The streamlined structure and 42-year loan term aligns well with opportunity zone (re)developments, which require a minimum 10-year hold period to fully capitalize on the tax benefits. The 221(d)(4) loan features a declining prepayment schedule for the initial 10 years post-construction and is open to prepayment at par for the remaining 30 years."
Located near the historic quarter, the Mirrorton Apartments development is part of the ongoing revitalization of Downtown Lakeland. Framework Group plans to utilize sustainable construction techniques to ensure the project will qualify for the National Green Building Standard (NGBS) designation. The property also includes an affordability component, with 15 units reserved for tenants earning 85 percent or below the Area Median Income (AMI).
Walker & Dunlop Senior Managing Directors Keith Melton and David Strange tell GlobeSt.com that affordable housing across the US is well-documented and not different, if not worse, in Florida.
"While Mirrorton Apartments helps address some of the affordability needs within its community, the major role it will play is to provide accessibly-priced housing, or "workforce housingm" they said.
This is particularly important in areas near major employment centers and neighborhoods with a healthy service industry, they added. "The residential urbanization in medium sized cities like Lakeland is something we are seeing throughout Florida, and is a very similar case to Highline Apartments, a HUD 221(d)(4) loan we closed in Downtown Melbourne, Florida."
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