$6.9 Million Midtown Apartment Financing Closes

Mar 04

12:00 PM

By Erin Piscopink

Tagged: All Neighborhoods

Read the Crain's article in its original format HERE

$6.9 Million Midtown Apartment Financing Closes; Construction to Begin 'Any Day'

Kirk Pinho for
Crain's Detroit

The former Tushiyah United Hebrew School at Kirby and St. Antoine streets in Midtown will be turned into 25 market-rate apartment units as part of a $6.9 million redevelopment now that the developer has closed on project financing.

Lead and asbestos abatement has been completed and construction on the building will begin "any day now," said Ian Wiesner, senior loan officer in the Ann Arbor office of Arlington, Va.-based Capital Impact Partners (formerly NCB Capital Impact), one of the lenders on the project.

Capital Impact Partners, Invest Detroit, the Michigan Economic Development Corp. and Midtown Detroit Inc., a subsidiary of the University Cultural Center Association, are providing more than $4.25 million in financing for the project, according to a news release.

In August, Hosey received approval for a $1 million performance-based loan from the MEDC. That loan is being used to purchase participation in Capital Impact's $2.32 million senior loan, Wiesner said.

Capital Impact and Invest Detroit are bridging $881,000 in state historic and brownfield tax credits. The project is also receiving $1.13 million in federal historic tax credit equity, Wiesner said.

The project developer is Richard Hosey III, a former senior vice president for Bank of America who is now the owner of Detroit-based Hosey Development LLC.

He is providing about $308,000 in equity, according to Wiesner. The remaining project costs will be covered with deferred developer and construction fees, Wiesner said.

There will be 21 one-bedroom units, 2 two-bedroom units and two studio units.

Construction is expected to be completed by the beginning of next year, Wiesner said.

An email sent to Hosey on Tuesday afternoon requesting an interview was not returned. A phone number for Hosey was also not working Tuesday.