Fort Collins affordable-housing community refinanced for $17.2M

FORT COLLINS — A pair of companies have closed on a $17.2 million refinance for a 193-unit affordable multifamily community in Fort Collins.

Dallas-based Johnson Capital Multifamily LLC, a lender of FHA- and HUD-insured mortgages, and Chesterfield, Missouri-based Gershman Investment Corp. closed on the refinance of Caribou I & II, a Class B garden-style apartment community at 4135 Verbena Way. The  property was developed in two phases, with the first completed in 2008 and the second in 2013.

Gershman  served as the originator and servicer for the transaction, while Johnson served as co-originator, underwriter and processor.

The financing was completed through the U,S. Department of Housing and Urban Development’s Section 223(f) program and carries a 35-year term. The mortgage will be funded through the issuance of Ginnie Mae mortgage-backed securities.

“FHA financing can be particularly well suited for established affordable-housing properties where owners are seeking long-term, stable financing that aligns with the needs of the asset,” Jason Pumpelly, Johnson Capital Multifamily’s president, said in a prepared statement. “Caribou I & II is a good example of that. Working with Gershman, we were able to apply our HUD underwriting and processing expertise to structure a long-term refinancing solution for a property that will continue providing much-needed affordable housing in Fort Collins.”

The Caribou community was developed using 9% low-income housing tax credits. Phase I includes 96 rent- and income-restricted units at 40% and 50% of area median income, while all 96 units in Phase II are restricted at 30%, 40%, 50% and 60% of AMI.

The transaction preserves the property’s existing affordability requirements, including restrictions associated with Phase II that remain in place through 2053.

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