A 156-unit acquisition rehab rental community located at 901 North Avenue J, Freeport, Texas. This is a gut-rehab of a property damaged by Hurricane Harvey. This re-development is undertaken as a point venture between SDC Development and RISE. The project financing is based upon allocation of Community Development Block Grant funds from the GLO were awarded in September 2019 and $13.2MM. A mixed-income development with 49% of the units at market rate and 51% at or below 60% of AMFI rents and income.
>Rise is the fee developer, contractor, property manager, and long-term owner of the development. Construction financing was provided by the IBC in the amount of $13.5MM. FNMA offered a rate-locked forward funding commitment at 4.25% per annum, fixed for 15 years, with a 35-year amortization permanent mortgage in an amount up to $15MM. The contractor started work on the project in December 2019. Completion is schedule for November 2020. 100% occupancy forecasted for February 2021. The CDBG grant for this portion of the development is $13.2MM. The construction contract was for $13.5MM.