Key financing has been arranged for the preservation and rehabilitation of Parkside Estates and Demby Terraces, a 315-unit affordable housing community in Inkster, Michigan.
CPC Mortgage Co., a subsidiary of the Community Preservation Corp. (CPC), announced that it has structured a $42.1 million loan for the effort.
Led by developer Good Housing Partnership, in collaboration with the Inkster Housing Commission (IHC), the properties will undergo a full rehabilitation and conversion under the Department of Housing and Urban Development’s Rental Assistance Demonstration (RAD) program, transitioning from public housing to Section 8. All 315 units will remain affordable to households earning at or below 60% of the area median income.
CPC Mortgage Co. is providing permanent financing through a Freddie Mac Targeted Affordable Housing forward commitment structured as a tax-exempt loan.
“Parkside Demby represents the kind of impactful, mission-driven preservation effort that is critical to maintaining and improving our nation’s affordable housing stock,” said Nicole Ferreira, head of CPC Capital. “By combining a comprehensive rehabilitation with a RAD conversion, this transaction will not only modernize these homes but also secure their long-term affordability for current and future residents.”
Finance partners include Huntington Bank, which served as the lead arranger and agent of the construction loan, with Deutsche Bank and Associated Bank as co-lenders. Cinnaire acted as the low-income housing tax credit syndicator, and the Michigan State Housing Development Authority served as the bond issuer.
“This redevelopment for Demby Terrace and Parkside Estates has been a long time in the making,” said Sheena Wells, IHC acting executive director. “Reaching this milestone is incredibly exciting, not just for our agency but for the residents who call these communities home. It reflects the dedication and the tireless efforts of our staff, consultants, and attorneys who worked relentlessly to bring this vision to life. We are proud to move forward in strengthening housing opportunities and enhancing the quality of life for the Inkster community.”
Planned improvements include repairs to concrete walkways, enhanced signage, and landscaping upgrades across the property. Exterior building improvements will feature new roofs, doors, windows, exterior lighting, masonry and siding repairs, and fresh paint. Interior renovations will include new flooring, lighting fixtures, water heaters, HVAC condenser and furnace replacements, as well as modernized kitchens and bathrooms. Accessibility upgrades will also be incorporated throughout the community.