MassHousing Closes on $21.2 Million in Financing for the Refinancing and Extensive Rehabilitation of the 201-Unit Bergen Circle in Springfield
The Michaels Organization plans approximately $17 million in property renovations while preserving affordability for lower- and moderate-income households
BOSTON – May 3, 2021 – MassHousing has closed on $21.2 million in affordable housing financing to The Michaels Organization for the refinancing and rehabilitation of the 201-unit Bergen Circle housing community in Springfield, where affordability will also be preserved for lower- and moderate-income residents.
Michaels, which has taken over ownership and management of Bergen Circle, plans approximately $17 million in property renovations to the eight-building housing community in the McKnight neighborhood of Springfield.
“Bergen Circle is an important source of affordable housing for families in Springfield, but the property is in need of significant upgrades,” said MassHousing Executive Director Chrystal Kornegay. “We were pleased to partner with Michaels not only to ensure that Bergen Circle will be modernized for the long term, but that it will continue to provide quality housing and economic opportunity for Springfield residents across a spectrum of incomes.”
“We are grateful to MassHousing for their support and for their trust in Michaels to revitalize this community and for the opportunity to manage this vital affordable housing resource so that it remains a neighborhood asset for generations to come,” said Jed Henderson, Michaels Vice President who spearheaded this development deal.
The Michaels Organization is the nation’s largest private sector owner of affordable housing in the nation, with full-service capabilities in development, management, construction, and finance.
MassHousing is providing Michaels Development with a $13.3 million construction and permanent loan and a $7.9 million repair loan. The MassHousing financing will allow Michaels Development to undertake significant improvements to the property, including building envelope repairs and water infiltration remediation, the installation of new windows, flooring and appliances, kitchen, bathroom, and HVAC upgrades, and replacing sanitary and water risers on the midrise building.
Located at 15 Girard Ave., in Springfield, 161 of the 201 apartments at Bergen Circle are contained in a seven-story, steel-framed building, and the remaining 40 apartments are contained in seven, two-story, wood-frame townhomes. There are 89 one-bedroom apartments, 72 two-bedroom apartments, 20 three-bedroom apartments and 20 four-bedroom apartments.
Of the 201 units, 170 are supported by federal project-based housing vouchers, with 118 of the units restricted to households earning up to 50 percent of the Area Median Income (AMI) and 52 units restricted to households earning up to 80 percent of AMI. The remaining 31 apartments are rented at market rates. The Area Median Income for Springfield is $77,200 for a household of four.
The general contractor will be Michaels Construction. The architect is Urban Practice and the management agent is Michaels Management.
MassHousing has financed 12 rental housing communities in Springfield totaling 2,564 units of housing with an overall original loan amount of $157.4 million. The Agency has also provided home mortgage loans to 4,736 homebuyers and homeowners in Springfield with an original purchase principal balance of $356.7 million.
About The Michaels Organization
The Michaels Organization is a national leader in residential real estate offering full-service capabilities in development, property management, construction, and finance. Serving 145,000 residents in more than 400 communities nationwide, Michaels is committed to crafting housing solutions that jumpstart education, civic engagement, and neighborhood prosperity, and to creating Communities That Lift Lives. For more information, please visit www.TMO.com.
MassHousing (The Massachusetts Housing Finance Agency) is an independent, quasi-public agency created in 1966 and charged with providing financing for affordable housing in Massachusetts. The Agency raises capital by selling bonds and lends the proceeds to low- and moderate-income homebuyers and homeowners, and to developers who build or preserve affordable and/or mixed-income rental housing. MassHousing does not use taxpayer dollars to sustain its operations, although it administers some publicly funded programs on behalf of the Commonwealth. Since its inception, MassHousing has provided more than $27 billion for affordable housing. For more information, visit the MassHousing website at www.masshousing.com, follow us on Twitter @MassHousing, subscribe to our blog, watch us on YouTube and Like us on Facebook.