As building prices rise, the developer of a 52-unit mixed-use building at 619 Porter St. in Kalamazoo, planned for a former industrial site north of downtown of the city in the southwest region of the U.S. state of Michigan, will get an additional $1.2 million in state loans.
The Michigan Strategic Fund board of directors today authorized an update to the Michigan Community Revitalization Program performance-based loan, bringing it up to $3.4 million. The MSF board also amended the repayment structure from principle and interest payments based on a 30-year amortization to debt service coverage dependent payments, with potential forgiveness of up to $1.2 million.
Reasons for approval of additional US$ 1.2M for the project for the construction of the new mixed-use building at 619 Porter St. in Kalamazoo
According to previous reports, the MSF Board awarded a $2.2 million loan to 619 LLC, the developer of the new mixed-use building at 619 Porter St. in Kalamazoo developer, on October 26, 2021.
The development team, comprising Jeff Nicholson, Craig Bush, and David Michal Scott requested the loan increase due to a “substantial escalation in construction expenses, which resulted in a 27% rise in the project budget, or a US$3.05 million financing shortfall. A $1.8 million equity commitment will provide additional money to offset the project’s cost rise.
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The new mixed-use building at 619 Porter St. in Kalamazoo apartment units are designed to feature a variety of affordable rents for tenants, with around 10% of the 52 units reserved for households earning 60% of the region’s median income. The remaining apartments will be marketed to households earning 80 to 120 per cent of the region’s median income. The development will also have 11,049 square feet of commercial space.
