Eastern Mortgage Capital funds affordable senior apartments.

Boston-based Eastern Mortgage Capital announced in late January it funded $3.167 million in permanent financing for an affordable senior apartment project totaling 91 units in Monroe, Louisiana.

Eastern Mortgage Capital funded the loan for the property, known as Ouachita Grand Plaza, using FHA 223 (f) mortgage insurance. Loans under this program are non-recourse with no carve-outs, and do not require yield maintenance or defeasance prepayment penalties.

The program is open to market-rate and affordable projects, and serves both for-profit and non-profit sponsors, according to Peter J. Panagako, director of Eastern Mortgage Capital.

"By utilizing the HUD mortgage insurance, the non-profit sponsor was able to generate significant amounts for immediate repairs and long-term reserves, thus ensuring a safe and healthy living environment for the foreseeable future," said Panagako. "Additionally, providing 35-year, fixed-rate, self-amortizing debt also ensures that the financing need not be a concern or distraction to the sponsorship for the future, and will allow them to focus on core programs."

The transaction provided maximum proceeds, allowing funds for property updates, and was structured as long-term, fixed-rate, non-recourse financing, said Panagako.

Ouachita Grand Plaza is located on the Ouachita River in downtown Monroe. The 77,000-square-foot building was originally constructed as a school in 1924, and was converted to apartments in 1989.