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 the city’s downtown in the southwest region of the US state of Michigan, will get an additional $1.2 million in state loans.
The Board of Directors of the Michigan Strategic Fund today authorized an update to the Michigan Community Revitalization Program performance-based loan, increasing it to $3.4 million. The MSF Board also changed the repayment structure from principal and interest payments based on a 30-year amortization to payments dependent on debt service coverage, with a potential discount of up to $1.2 million.
Reasons for the approval of an additional $1.2 million for the new mixed-use building project at 619 Porter St. in Kalamazoo
According to previous reports, MSF’s Board of Directors provided a $2.2 million loan to 619 LLC, the developer of the new mixed-use building at 619 Porter St. in Kalamazoo, on October 26, 2021.
The development team, consisting of Jeff Nicholson, Craig Bush and David Michal Scott, requested the loan increase due to a “substantial escalation in construction expenditures, which resulted in a 27% increase in the project’s budget , or a funding shortfall of US$3.05 million. An equity commitment of $1.8 million will provide additional funds to offset rising project costs.
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The new mixed-use building at 619 Porter St. in Kalamazoo is designed to provide a variety of affordable rents for tenants, with approximately 10% of the 52 units reserved for households earning 60% of the area’s median income. The remaining apartments will be marketed to households earning between 80 and 120% of the region’s median income. The development will also have 11,049 square feet of retail space.
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