Development Finance Projects

Bel Air Homes, Springfield, MA
LDS arranged for and executed the $2,000,000 recapitalization of Bel Air Homes which closed in February 2016. Bel Air Homes is a 40 unit scattered site multi-family housing development that is fully subsidized under a HAP contract. LDS also worked with the general partner to purchase the LP interests. This was the first project to close under MHP’s new FANNIE permanent funding program.

Lincoln Village, Worcester, MA
LDS Consulting Group, LLC is coordinating the funding applications for a proposed $160M re-capitalization of the 1,213 unit rental development. Lincoln Village in Worcester, Massachusetts was originally built in 1977 by the Carabetta Companies. Its current funding will expire at the end of 2017 and the project is in need of major capital repairs to continue to provide affordable housing to the residents of Worcester. LDS is joined by Rick Lefferts of Commonwealth Collaborative to assist in the funding efforts for this complex transaction. Among other funding sources, the project is projected to include substantial tax exempt bond financing with MassHousing, a HUD decoupling loan, 4% low income housing tax credits. The LDS Commonwealth team submitted a pre-application to DHCD and given the complexity of the transaction, it will apply to DHCD out of round with three separate applications. In addition, LDS helped the project through the MASSHOUSING OAS process.

The project received loan approval from MassHousing and executed the first phase of the funding in December 2014. This included the award of 900 RAD Vouchers and a bridge loan with MassHousing.

Chateau Apartments, Springfield, MA
LDS is working on the recapitalization of Chateau Apartments. It is a 65 unit rental apartment community in a seven story historic 1917 brick building that was fully renovated in 1981 to an apartment use. It consists of 7 studios (378 square feet), 39 one (562 square feet) and 19 two (706 square feet) bedroom units. The development has a Project-based Section 8 Housing Assistance Payments contract which runs through May 31, 2023. The property currently has three mortgages as it took advantage of the mark to market program. The refinancing will be with MassHousing under their risk sharing program. There are complications with the funding including paying off a 121A contract and the need for an overhang loan. The proceeds of a refinance would go to pay customary closing costs, fund any immediate repair items, pay off the existing debt and if practical, pay off existing partners as well as allow some cash out for the client who is GP. It is expected to closing in the fall of 2016.

MassGaming Commission
LDS was engaged on several occasions by MassGaming in connection with their review of slots parlors and resort casinos. LDS’s first engagement was to review the petitions by surrounding communities for impacts to schools, housing, local business, labor force and municipal staffing. We worked as one of a team of consultants among other reviewing traffic etc. in order to determine if there would be a financial impact to a community. The proposed slots parlors were in Leominster and Raynham and the resort style casinos in Springfield, Everett and Revere. Earlier this year, we were asked to review the mitigation agreement between Rush Gaming and the City of Brockton. Our work involved looking at police, fire, schools and other matters to determine if the mitigation funds would be enough to cover potential municipal impacts. LDS brought in Connery Associates for this matter.

Fiscal Impact, Overlay Zone, Melrose, MA
LDS provided technical assistance to the City of Melrose Office of Planning and Community Development in connection with an overlay district proposal for 15 acres of land on lower Washington Street. LDS reviewed and commented on the developers Fiscal Impact Report.

Real Estate Investment Review
LDS provided business planning advice to Trinity Financial in connection with their potential investment in a multi-family housing development in Connecticut.  The project would be part of a historic rehabilitation with the first phase creating 116 apartment units.  As part of its work, LDS reviewed the market study and financial pro-formas in order to provide a reality check.

Asset Management
Asset Manager for Bay North Capital (formerly Charlesbank Capital Partners) on The Crossings Portfolio that Bay North acquired in a joint venture with Benchmark Assisting Living. The Crossings portfolio consists of eight moderately-priced assisted living facilities in Massachusetts, New Hampshire and one high-end facility in Connecticut. LDS provided monthly financial reviews, quarterly meetings with the owner and manager, yearly site and operations inspections, and yearly annual plan review.

Supply and Demand Analysis and Sales Comparison
LDS was hired by AIMCO to help with the acquisition of two apartment portfolios.  One portfolio included more than 500 market rate units in 15 buildings in the Fenway, Allston and Brighton neighborhoods of Boston.  The target market for these units was graduate students and young professionals.  LDS provided a supply and demand analysis and sales comparison to assist the client and its investment committee understand the current portfolio and an improved portfolio.  LDS examined what type of improvements should be made to the units and spoke to higher education and health care institutions in the area about their housing needs.