PROVIDENCE – Bank Rhode Island has finalized a loan of more than $2.2 million to provide financing for a firm to acquire the 83-unit Park Terrace apartment complex in West Warwick.
The bank indicated the buyer, SC Parkview Terrace LLC, will continue to set aside most of the units as affordable housing. The buyer opted for a derivative financing product known as a “swap,” which allowed the buyer to lock into paying a fixed interest rate for 10 years.
“Helping to ensure the continuity of affordable housing available to Rhode Islanders was among the primary factors driving BankRI’s commitment to financing this project,” said Jane Long, the bank’s assistant vice president of commercial real estate, who facilitated the transaction on the bank’s behalf. “We are pleased to have met the financial needs of our client and commend them for utilizing the resources of ‘swap’ financing to maintain a fixed rate for the next decade.”
Located on 2 acres at 72 Gough Ave., the apartment complex operates under a restrictive agreement declaration of land covenant for low-income housing in conjunction with the R.I. Housing & Mortgage Finance Corp., which monitors the project. Three-quarters of the units, or 62 units, are reserved for tenants at or below 60 percent of the area median income and the remaining 21 units are leased at market rates.
The apartments are situated in multiple two- and three-story wood-frame and vinyl-sided buildings constructed in 1972. The complex underwent extensive renovations in 1995 and 2015, the bank said.
Of the 83 units, 58 are one-bedroom and one-bathroom units and 25 are two-bedroom and one-bathroom units. The single-bedroom units average 618 square feet of living space, while the two-bedroom units average 774 square feet. The property also has 162 parking spaces.
Providence-based BankRI is a subsidiary of Brookline Bancorp Inc.
Scott Blake is a PBN staff writer. Email him at Blake@PBN.com.