New York, NY — October 1, 2024 — Lument Securities announced it has facilitated the closing of $21.5 million tax-exempt and taxable bonds to fund the construction and long-term financing of Lashkowitz Riverfront, a 110-unit, affordable multifamily apartment community in Fargo, North Dakota. The project will be developed by BlueLine Development and the Fargo Housing and Redevelopment Authority. Director Thomas Dixon in Lument’s Charlotte, North Carolina office led the transaction, along with Associate Director Kyle Sullivan of Lument Securities.
The $21.5 million bonds were purchased by Lument parent company ORIX USA’s Municipal Finance and Infrastructure group to act as both a $10.3 million permanent mortgage and construction financing. The transaction utilizes both the 4% and 9% low-income housing tax credit (LIHTC) program—83 units will be constructed utilizing 4% tax credits and 27 units will be constructed using 9% tax credits, both with rent and income restrictions ranging from 30% to 50% area median income (AMI).
“The transaction had a unique “twinning” structure that leveraged both the 4% and 9% LIHTC awards requiring four series of bonds, including tax-exempt and taxable, said Lument’s Dixon. “This creative financing approach allows the borrower to build much-needed affordable multifamily apartments in the growing Fargo area, ensuring area residents a stable and affordable place to live.”
The total term, including construction and permanent financing, is 18 years, with five years of interest only, and a 40-year amortization schedule. The portion of bonds used during construction will have a 3-year term.
The property will be managed by Fargo Housing and Redevelopment Authority with BlueLine Property Management (BLPM) facilitating the pre-leasing and lease-up process. BLPM was founded in 2018 as an affiliate of BlueLine Development and has grown rapidly in recent years. It now manages over 20 properties and 650 units across the Mountain States.
About Lument
Lument, a subsidiary of ORIX Corporation USA, is a national leader in commercial real estate finance and delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument offers Fannie Mae, Freddie Mac, FHA, USDA, and balance sheet financing, as well as a full suite of capital market lending products. In addition, Lument provides a suite of real estate advisory solutions including real estate investment sales, investment banking, and investment management solutions. The company has approximately 600 employees in over 30 offices across the United States.
Securities, investment banking, and advisory services are provided through Lument Securities, LLC, member FINRA/SIPC. Lument Investment Management, LLC, is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit https://www.lument.com/.
