A development group just closed on a $53 million deal to rebuild a 400-unit apartment complex in New Orleans East.
Bellwether Enterprise, the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment, announced the closing of a $31.5 million deal to rebuild the Village of Versailles affordable living community in New Orleans. Bellwether arranged the financing through the U.S. Department of Housing and Urban Development’s FHA loan program.
The former Versailles Arms apartment complex at Dwyer Boulevard and Saigon Drive will be rebuilt by developer Mirus New Orleans LLC as the Village of Versailles, a representative of Bellwhether told Canal Street Beat. Mirus is based in Wisconsin. Construction will include 50 new two-story apartment buildings and several community/amenity buildings.
“As devastating floods continue to plague Louisiana, helping displaced families rebuild and get their lives back on track via access to stable, resilient housing is vital to our mission. 11 years after Hurricane Katrina, the Village of Versailles is finally experiencing a transformation from a practically vacant complex to what will be a thriving and vibrant community,” said Jon Killough of Bellwether in a statement.
Prior to 2005, the site of Village of Versailles housed two 200-unit, HUD-insured apartment buildings, which were built during the 1970s.
The loan is a HUD 221(d)(4) new construction financing loan for Mirus New Orleans, LLC (Mirus), which features interest-only payments for the first 22 months, with a 40-year term and amortization following. The financing of the project also includes the issuance of short-term tax-exempt bonds, four percent Low Income Housing Tax Credits purchased by City Real Estate Advisors, and HOME Funds provided by the Louisiana Housing Corporation.
New Orleans East has seen more interest from developers lately, with a massive new proposal for the old Six Flags site and a new Walgreens under construction.