Lightengale Group congratulates Galena Park Terrace (GPT) & Robert Cottingham Property Management Company on the closing of Galena Park Terrace in Peoria Heights, Illinois.

Lightengale Group congratulates Galena Park Terrace (GPT) and developer/ property manager Robert Cottingham Property Management Company on its June 2016 closing and start of rehabilitation of Galena Park Terrace in Peoria Heights, Illinois.

Galena Park Terrace is the major rehabilitation of an existing, 45-year-old Section 202 development for senior and disabled residents which has been well maintained but has undergone no major improvements since its original construction.

The rehabilitation includes reducing the overall unit count from 151 units to 128 units, as 46 of the studio units will be combined to create 23 larger, more marketable one bedroom units; replacing the failing water drainage system on the sloped site; updating the kitchens and bathrooms in the units; providing energy efficient systems; and enhancing the community building and the outdoor spaces. The award of 9% credits from IHDA and a new, FHA-insured first mortgage enables the renovation required to preserve this housing development in an IHDA-designated Opportunity Area.

This is Lightengale Group’s (LGG) second project with the team, which is similar to the successful renovation of Leisure Acres Phase I. Virginia Pace, LGG’s President, reflected “It’s a pleasure to work with a team that includes an owner and property management firm dedicated to the well-being of its residents and a construction company that can expertly complete renovations while the residents live on site.”

Draper and Kramer shepherded the FHA 221(d)(4) approval process involving pre-payment of the existing debt, issuance of a new 20-year HAP contract, and securing the waivers related to the unit reconfiguration. Developer’s counsel Miller, Hall & Triggs, LLC  expertly navigated the loan documents and closing diligence. Zobrist Construction completed significant early diligence on the construction scoping and thus was able to bring their final contract amount to their initial pricing.  Lightengale structured the financing beginning with the IHDA application process, assistance with the IHDA diligence and relocation process and closing with the investor, Cinnaire.  Again, congratulations to the Galena Park Terrace team!