Participation Loan with Coastal Enterprises Improves Housing on Former Naval Base in Maine

Share This Post

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.

Subscribe To Our Newsletter

Stay up to date with NeighborWorks Capital

More To Explore

Chief of Consulting

The Chief of Consulting (CC) is a member of the senior management team and has overall responsibility for the startup and buildout of a consulting business focused on the affordable housing and community development industry. The CC will need to be an entrepreneur at heart but also be able to work as part of a team. The CC is a critical strategic partner for the Chief Executive Officer (CEO) and will report directly to the CEO.

Read More »