Buyer gets $35.6M loan for affordable Delray rentals

Walker & Dunlop structured a $35.8 million Freddie Mac tax-exempt loan for the acquisition and renovation of an age-restricted affordable housing property in Delray Beach with 404 units.

Walker & Dunlop arranged the $35.8 million loan for Smith & Henzy Advisory Group to acquire the Lake Delray Apartments and to invest $14.3 million in property improvements.

The Palm Beach Housing Finance Authority issued the 17-year loan, which features two years of interest-only payments followed by a 35-year amortization schedule.

The renovation work at Lake Delray Apartments will include replacement of all kitchens, baths, windows, flooring and mechanical systems. The loan proceeds also will pay for the addition of a 1,200-square-foot gym, a yoga room, a library with computer rooms, a barbecue area and outdoor LED lighting, plus renovations to the clubhouse and to two existing pools.

Units at Lake Delray Apartments are reserved for residents 62 and older. The manager of the property, the Delray Beach  Housing Authority, has provided housing assistance payment contracts for 193 of the 404 units. The rest of the units are available to people whose income is 60 percent of the area’s median income. [Affordable Housing Finance] – Mike Seemuth