Market Mill, Lowell
Partners: Peabody Properties, Rockport Mortgage
When the owners of Market Mill, a 230-unit apartment complex in Lowell wanted to refinance, MassHousing's new MAP/Ginnie Mae lending execution provided the ideal solution, both for the owners and the residents.
The owners, Peabody Properties were able to pay off three outstanding loans totaling more than $8 million that carried an average interest rate of 7.7%. Through the refinancing, Peabody Properties obtained a new $24 million loan and were able to take out accumulated equity.
The new FHA-insured 223(f) loan came with an interest rate of just 3.18%. As part of the loan agreement, 46 of the units, or 20% of the total, will have their affordable rents preserved for at least 15 more years. Market Mill was one of three loans closed through the new MAP/Ginnie Mae program in fiscal year 2015. The Ginnie Mae component ensures the timely payment to investors, which is critical to raising capital for affordable housing.