Fitchburg affordable housing complex refinances for $14M
Photo | Courtesy of MassHousing
Fitchburg Green apartment complex
Barkan Cos. has refinanced the 159-unit Fitchburg Green property on Water Street in the city with MassHousing. The state’s affordable housing bank provided $14.4 million in financing to keep rents low for at least 35 years.
The Boston landlord refinanced the high-rise through the agency’s Multifamily Accelerated Processing/Ginnie Mae Joint Venture Initiative with Gloucester lender Rockport Mortgage Corp. The program is available to the owners of rental housing through the U.S. Department of Housing and Urban Development, which provides Federal Housing Administration insurance for the project.
The combination of FHA insurance and a Ginnie Mae guarantee enables borrowers to get financing with lower interest rates, while preserving affordability.
Under the terms of the deal, the loan will allow Barkan to refinance its existing MassHousing loan at a 6.8% interest rate into a new 35-year mortgage at 3.3%.
Built in 1980, Fitchburg Green provides 143 units of affordable housing for senior citizens in an eight-story building consisting of 130 one-bedroom apartments and 13 two-bedroom apartments. Additionally, three two-story townhomes for families contain 14 two-bedroom apartments and two three-bedroom apartments for families.
Among the property improvements planned for Fitchburg Green are kitchen and bathroom upgrades, repaving parking areas and walkways, new landscaping, lighting and signs, common area flooring replacement, as well as in-unit accessibility renovations.
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