HUD HELPS MCKINLEY TOWER APARTMENTS BECOME A REALITY

ANCHORAGE - The Seattle HUD Office of Multifamily Housing issued a firm commitment to CW Capital, the lender, to provide FHA mortgage insurance on the proposed project on Dec. 16, 2004. The loan amount to be insured is $7,898,900. Initial closing is tentatively scheduled for February 23.

"This is the first 'air rights' project FHA has insured in Alaska," said Renee Greenman, HUD's Multi-Family Program Director in Seattle. "HUD's closing on this project is contingent on approval of financing for the assisted living facility on the lower floors."

"HUD is proud to be a partner with Alaska Housing Finance Corporation in revitalizing this piece of downtown Anchorage," said Colleen Bickford, HUD's Alaska Field Office Director. "We believe it is very important to retain a residential neighborhood in the downtown area."

Financing for the 100 units of market rate apartments in the 5th through 14th floors is being accomplished through HUD's Section 221(d)(4) mortgage insurance program, which allows for substantial rehabilitation. The development, which will consist of 30 studio units and 70 one-bedroom units, will not be a senior or age restricted project.

The lower floors will contain a senior assisted-living facility owned and developed by Marc Marlow with financing through the Alaska Housing Finance Commission.

The George Sullivan Manor, to be constructed adjacent to the McKinley Towers, will offer 20 units of affordable
senior housing, which is being financed in part by a $3,620,500 capital advance from HUD.

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