Projects: Private Financing
The Record Company - Boston, Massachusetts
Nolan Sheehan Patten represented Massachusetts Housing Investment Corporation in deploying $4.3M of New Markets Tax Credits to finance the fit-out and equipping of approximately 12,500 square feet of industrial space to be operated as a music recording studio and rehearsal facility, while also representing BlueHub Loan Fund in its provision of source financing. Located in the Roxbury neighborhood of Boston, the project will provide affordable music workspace and professional development programs to communities with historically limited access. The project has committed to creating new jobs and ensuring that professionals in the music industry are properly compensated for their work. Our representation utilized an innovative NMTC structure which limited transaction costs and maximized the tax credit equity available to the project.
Boston Youth Hostel – Boston, Massachusetts
Nolan Sheehan Patten represented two of the three community development entities (CDEs) in this $36 million financing which combined the New Markets Tax Credit and Historic Tax Credit programs. We advised both Massachusetts Housing Investment Corporation (MHIC) and Massachusetts Development Finance Agency (MassDevelopment) in structuring and closing qualified low-income community investments of approximately $23.5 million. The proceeds will be used to finance the Dill Building—a historic building at the intersection of Boston’s midtown cultural district, theatre district and Chinatown—into the first LEED certified youth hostel in the United States. Additionally, the Project is expected to generate more than $16 million of annual revenue for Boston-area businesses.
Paris Village – East Boston, Massachusetts
Nolan Sheehan Patten represented the developer EBCDC Inc. in connection with the development of 32 units of affordable housing in East Boston. Financing sources included loans from Citizens Bank, the City of Boston, DHCD, AHT and MHP, together with tax credit financing from Boston Financial. The project will revitalize the neighborhood by developing a currently vacant parcel of land.
Developer Line of Credit – Connecticut, Rhode Island and New York
Nolan Sheehan Patten represented a lender in connection with a $2 million line of credit to a developer to support its pipeline of affordable housing projects. The developer will use the line of credit to finance pre-development costs and bridge permanent financing. The line of credit was secured by a pledge of developer fees.
Chapman Arms – Cambridge, Massachusetts
Our attorneys represented Homeowner’s Rehab, Inc., a Cambridge-based non-profit housing developer, in the acquisition and financing of Chapman Arms, a 50-unit building with 10,000 square feet of commercial space located in Harvard Square ground-leased from Harvard University. Homeowner’s Rehab, Inc. was designated as developer by DHCD under M.G.L. c. 40T in order to preserve the affordability of 25 of the units for the long term. This was DHCD’s first developer designation under Chapter 40T. Acquisition of the project was financed by Community Economic Development Assistance Corporation and rehabilitation of the project was financed with a loan from Bank of New York Mellon, the purchaser of Tax Exempt Bonds issued by MassDevelopment, loans from the Massachusetts Department of Housing and Community Development, the City of Cambridge, Cambridge Neighborhood Apartment Services, Inc., and the Massachusetts Affordable Housing Trust Fund. Financial assistance also included an equity investment by Massachusetts Housing Equity Fund and the sale of Massachusetts State Historic Tax Credits.
Lowell Community Health Center – Lowell, Massachusetts
Nolan Sheehan Patten represented Community Health Center Capital Fund, Inc. in connection with a $23 million NMTC financing for the Lowell Community Health Center. The project involved the rehabilitation and adaptive reuse of an approximately 64,000 square foot historic mill building on the Merrimack River in Lowell, Massachusetts. The Lowell Community Health Center provides affordable health care to children and adults and has served the communities of greater Lowell since 1970. This project will allow Lowell Community Health Center to expand its services substantially to the greater Lowell community.
Community Health and Social Services Center – Detroit, Michigan
Nolan Sheehan Patten represented Capital Link, Inc. in obtaining a full recourse loan from The Kresge Foundation, and thereafter utilizing the proceeds to provide an upper-tier loan to the Community Health and Social Services Center, Inc., a federally qualified health center in southwest Detroit. The loan proceeds were then leveraged, along with capital campaign funds, grant proceeds and tax credit equity, through the New Markets Tax Credit structure to provide the health center with over $17 million in financing for the expansion and construction of its new primary care and dental facility. We assisted our client in identifying a structure that would deliver appropriate collateral and security for its own full recourse loan obligations while at the same time respecting the NMTC structure.
Putnam Green Apartments – Cambridge, Massachusetts
Furthering the transition of a formerly industrial section of Cambridge into a cohesive residential community, Nolan Sheehan Patten represented Homeowner’s Rehab., Inc. (HRI) in utilizing a ground lease structure to acquire and finance this new, 40-unit, affordable housing complex. The units have been built to satisfy, and are in the process of being certified for, the LEED for Homes Platinum standard. We advised HRI in assembling a financing package of over $13 million, which consisted of construction/permanent financing from TD Bank, N.A. and Massachusetts Housing Partnership Fund Board, public financing from the City of Cambridge, DHCD, CEDAC and MassHousing, and equity financing from the Massachusetts Housing Equity Fund, Inc. Of the 40 units, 6 are reserved for families with incomes below 30% median income and 3 are accessible to individuals with mobility and/or sensory impairments. This development now fills the streetscape along Putnam Avenue and Sidney Street and adds to the residential vitality of the neighborhood.
Virginia Blanchard School – Uxbridge, Massachusetts
Nolan Sheehan Patten represented the nonprofit developer Virginia Blanchard Memorial Housing Association, Inc. and JNJUHL and Associates LLC in the renovation of a former school as a much-needed 25-unit affordable housing development. Located in Uxbridge, MA, the Virginia A. Blanchard School was built in 1873, and is listed on the National Register of Historic Places. The project was funded by a combination of federal low-income housing and historic tax credits, state low-income housing and historic tax credits, federal and state lending sources, and private lending sources. Upon completion, 100% of the units at the Blanchard School will be reserved for residents with incomes of 60% or less than the area median, with a priority for veterans and local residents.