Love Funding closed a $10.8 million loan for the construction and permanent financing of Lofts by the Lake at Apalache Mill, a proposed market-rate apartment community in Greer, South Carolina.
The project involves the substantial rehabilitation of a two-building former textile mill to loft-style residential apartments. Once completed, Lofts by the Lake at Apalache Mill will offer 97 one- and two-bedroom units. The 7.2-acre property was originally developed in the mid-1830s, and the first modern mill was constructed as a brick facility in 1988. The original wooden mill was demolished in 1903, making way for a second mill. The proposed apartment community will feature high-end, loft-style amenities including massive two-story windows, pine columns, exposed historic brick walls, lake views in 51 of the units, and communal resources including lake access and kayak shoots.
The financing was secured by Love Funding Senior Director Tammy Tate through the U.S. Department of Housing and Urban Development’s 221(d)(4) loan insurance program. The HUD program provided the development team with low-rate, non-recourse financing for the duration of construction and for a subsequent 40-year term. The transaction also makes use of federal and state historic tax credits, and state textile mill credits. Since the majority of the tax credits aren’t available until final completion, Tate also helped arrange a bridge loan for the borrower through Love Funding’s parent company, Midland States Bank.
“It gives me great pleasure to be able to design and renovate this 180-year-old site, hopefully adding another 100 years to its life,” Goodrich said. “The underwriting process was complicated throughout and the transaction may never have been completed without the guidance of Tammy Tate and the rest of the team at Love Funding.”
The development is being led by Dale Goodrich, who has 30 years of experience developing and managing single-family, multifamily and commercial real estate. His experience includes historic rehabilitation and tax credit funding. Lofts by the Lake at Apalache Mill will be managed by Blue Ridge Property Management, a full-service multi-family property management company that currently manages 19 HUD-insured projects. And the property is being designed by architect Joe W. Hiller Jr, who has designed over 30 multifamily apartment projects, townhomes and condominium projects across the State of South Carolina. Charley Patrick will oversee construction for Triangle Construction Company, with 70 years of experience in residential, commercial and industrial construction.