MassHousing has closed on $16.4 million in loans for the acquisition, renovation and preservation of affordability for an apartment building in Lynn.
St. Stephen’s Tower, located at 25 Pleasant St., is being acquired and rehabilitated by an affiliate of St. Stephen’s Church and Beacon Communities LLC. It is comprised of 10 studio apartments, 110 one-bedroom apartments and 10 two-bedroom apartments contained in a 10-story building.
The property was originally financed with a federal Section 236 mortgage loan and a rental assistance payment contract, which were both set to expire in March 2017. St. Stephen’s Tower was selected for MassHousing’s Pilot Program for Revitalizing Severely Distressed Properties and was eligible to prepay the Section 236 loan.
In this transaction, MassHousing and Beacon Communities, used an innovative loan that was underwritten with a 17-year term and a 35-year amortization period with servicing based on a declining loan balance. As a result of the MassHousing financing, the property will receive Section 8 project-based vouchers through the HUD Moving to Work program, which is administered by the Cambridge Housing Authority. This transaction will extend the affordability at St. Stephen’s for the next 30 years.
Property updates will include repairs and renovation to common areas and apartments, repair and replacement of building systems and increases in energy and water efficiency.
The contractor will be Keith Construction Inc., the architect is Bechtel Frank Erickson Architects Inc. and the management agent is Beacon Residential Management.
