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ST. TAMMANY PARISH, LA-A Baton Rouge-based multifamily developer has landed a $17.4-million loan for the development of The Park at Covington, a 264-unit garden-style apartment project in St. Tammany Parish, LA.

The construction-to-permanent FHA 221(d) 4 program loan will cover 97% of the projects entire transaction costs during its 16-month construction schedule. The non-recourse, fixed rate loan of 6.20% will roll into a 40-year self-liquidating term upon construction completion. The borrower is listed as Tammany Park LLC, but is said to be a Baton Rouge-based multifamily developer that owns and operates multifamily projects throughout Louisiana and the southeastern United States. The loan was funded by Metropolitan Funding Corp. of New York and sourced by the Houston office of Holliday Fenoglio Fowler.

“This is a classic example of a rapid growing tertiary market that was in dire need of a class A apartment community,” says HFF’s Tucker Knight, who sourced the loan. “We arranged a high leverage loan that allowed the borrower a minimal equity component. The extended amortization added some debt service relief through stabilization. All-in-all, it was a very smooth transaction.”

Slated for the intersection of Park Place and Andrew Drive, The Park at Covington will consist of 22 apartment buildings and a clubhouse. Amenities will include a fitness center, business center, pool, playground and a washer and dryer in each unit. The average size of the 1-, 2-, and 3-bedroom units is just under 1,000 sf and rents will be in the $.90 per foot range. The project will be managed by Campbell Management, a Baton Rouge-based company.

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