Participation Loan with Coastal Enterprises Improves Housing on Former Naval Base in Maine
In our first financing partnership with Coastal Enterprises, Inc. (CEI), a Maine-based CDFI, NC purchased a $500,000 participation in CEI's $900,000 acquisition loan to Pegasus Landing LLC for the purchase of Brunswick Landing, 190 apartments that were formerly enlisted quarters on the former Brunswick Naval Air Station.
Some of the apartments will continue to be rented to the Navy for incoming crews for ships being built at the Bath Iron Works shipyard. After the acquisition and transition from Navy rentals, the new owners plan to improve the apartments by installing full size kitchen, ranges and LED lighting, which will make these apartments more attractive to full-time, non-seasonal residents. The units will be rented well below the 80% AMI max of $1,087 month. Utilities are included in the lease price and includes heat, electricity and cable.
Brunswick Landing is conveniently located near both employment centers and major roadways, especially with continued redevelopment of Brunswick NAS into a local commercial a center. The two-story units include a kitchen, bathroom, and storage space on the first floor and a bedroom and bedroom/living room on the second floor.
The acquisition loan will be refinanced and repaid with a HUD permanent loan in late 2020, after leasing-up and stabilizing the property. Pegasus Landing’s principals have substantial experience with HUD loan products and have applied this acquisition-to-HUD refinancing model to nearly all of the 12,000 multifamily units they’ve managed.