MidHudson LLC has invested $24.5 million in preferred equity for the development of The Couture, a $191 million, 44-story, 322-unit apartment tower that connects the Milwaukee lakefront with downtown through public plazas and pedestrian bridges. The Couture is being developed by Barrett Lo Visionary Development (BLVD). It will include 42,000 square feet of restaurant and retail space and will be a hub for the Milwaukee Streetcar. JLL is the MAP lender on the transaction and the equity placement assignment was arranged by Baird.
MidHudson’s investment included $11.7 million from its HUD Reserve Funding Program and $12.8 million of additional preferred equity.
MidHudson President Joseph Carroll said, “MidHudson is excited to partner with BLVD, a well-respected developer of trophy properties. This is a significant project for MidHudson. It represents our largest Reserve Funding Program transaction and offered the opportunity to provide significant additional preferred equity. We believe that we have earned our reputation for providing certain and effective financing solutions for HUD financed projects and were happy to provide an additional capital solution to BLVD outside our defined program. We will continue to build creative and highly effective financing products to make HUD transactions more efficient for our borrower partners.”
“MidHudson was great to work with,” said Rick Barrett, President of BLVD. “They first engaged on The Couture two years ago and offered creative solutions when we hit those inevitable bumps on the road to the closing table. We look forward to working with them again. Their Reserve Funding Program is a return efficient solution that all HUD borrowers need. As they continue to expand their product offerings, I think more and more HUD developers will want to know MidHudson.”
Jim O’Brien, a senior real estate investment banker at Baird, echoed those sentiments. “The MidHudson team brought a lot to the table. They came in to provide capital through the Reserve Funding Program, but as BLVD’s needs changed, MidHudson stepped up to play a larger role. They are experts in the HUD financing space and I am interested to see them grow as they offer more products.”
The MidHudson D4 Reserve Program satisfies reserves required for HUD financed developments without diluting the sponsor’s ownership stake. MidHudson will be announcing new products to provide HUD solutions in the near future.