Monday, October 27, 2008
USA Fund completes three loans
Boston Business Journal
Friday, October 24, 2008
New Boston Fund Inc.`s real estate investment fund has secured three loans for to acquire and develop projects in Rhode Island and Connecticut.
The fund, called The Urban Strategy America Fund (USA), arranged the loans for three separate projects. The first loan was provided by the Bank of America to purchase the Errichetti Apartment Portfolio in Waterbury, Southington and Wolcott, Conn. The second loan, made by Citizens Bank, will finance the fund`s BKM Portfolio in East Hartford, Conn., and the third, also provided by Bank of America, is a construction loan for the completion of Quonset Gateway in Quonset, R.I.
The Errichetti Apartment portfolio, purchased last month from the Errichetti family in a joint-venture partnership with Beacon Communities LLC, consists of 404 units of Section 8 elderly apartments. The portfolio consists of nine buildings on four separate properties: Exchange Place Towers, Flanders West, Countryside I and Countryside II. The Quonset Gateway is a 961,660-square-foot mixed-use development that will include 391,900 square feet of office space, 333,960 square feet of retail space, and an 81,700-square-foot, 160-room Hilton Hampton Inn hotel. There will also be 154,100 square feet of non-retail space, all being developed by New Boston Fund.
The BKM portfolio is a 389,876-square-foot, seven-building industrial complex purchased in May. In the deal, BKM leased back six of the buildings representing 92.3 percent of the space for a lease term of 10 years.
The USA Fund was launched in 2004 with three goals in mind: to generate solid returns to investors, spurring economic development and workforce housing, and promoting environmental sustainability.
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