TCF Bank pledges $1B for the underserved
TCF Financial Corporation is one of a few top lenders trying to give back to their home city and its communities. Headquartered in Detroit, the $49 billion asset holding company of TCF National Bank pledged to take action for racial equality and social justice in the communities it serves.
Now, less than two months later, TCF bank took action to stay true to that pledge, launching a $1 billion loan commitment to minority communities, women and minority owned small businesses across TCF’s footprint and nationwide.
A separate $10 million grant program will assist low-to-moderate income homebuyers. Available with a TCF Home Loans first mortgage or Detroit Home Mortgage loan, the program is limited to certain geographic areas, and benefits owner-occupied principal residences only.
“We recognize the crucial need for change, and as a bank committed to strengthening individuals, businesses, and communities, we are inspired to help these business owners create wealth and pursue their dreams,” said TCF Executive Chairman Gary Torgow. “Last month, we joined Mayor Duggan and other business leaders in Detroit and pledged to do our part to fight racism, bigotry and inequality in this country. Today, we take another step in our journey to help create a more equitable future for all.”
In 2019, TCF and Chemical Bank merged, forming the largest Michigan-based bank. It operates branches in Michigan, Illinois, Minnesota, Colorado, Ohio, South Dakota and Wisconsin, but conducts business across all 50 states and Canada.
TCF bank has a long history of community support, philanthropic giving, volunteering and strategic partnerships. Examples include a $5 million commitment to Detroit’s Strategic Neighborhood Fund for the Grandmont Rosedale neighborhood; and a commitment to leverage another $30 million in fund donations from six other Michigan corporations, in collaboration with the Mayor of the City of Detroit.
The bank is calling for companies to support minority and women owned small businesses that “drive the economy and are the backbone of our neighborhoods,” but historically had a more difficult time obtaining loans. TCF expects to use revenue generated from the Paycheck Protection Program (PPP) to help support its commitment, and to offer business loans of up to $1 million each “in largely minority communities.”
The bank plans to focus its efforts in Detroit, Minneapolis and St. Paul, Chicago, Cleveland, Grand Rapids and other key cities in its markets.
The Heart & Home program for qualified homebuyers will provide grants up to $3,000 for closing costs, to customers who earn less than 80% of the area median income, or purchase homes in a low-to-moderate income census tract.
TCF’s stated goal is to fund about 750 grants in 2020, up from nearly 300 grants funded in 2019.
“When people own their homes, it builds the neighborhood, provides stabilization and strengthens the community,” said Craig Dahl, CEO of TCF Bank. “We recognize that access to funds for a down payment is the single largest hurdle to home ownership, and our hope is this grant will provide a pathway to home ownership for more people.”
Responding to the pandemic, the civil unrest, and flood damages in the Midland and Gladwin counties, the bank has increased its existing community investment in the several ways.
Match donations for Henry Ford Health System and M-Health Fairview COVID-19 Emergency Needs Fund:
- $10 million in fast relief, low-interest loans to Wayne County businesses
- $250,000 in donations to Great Lakes Bay Region community organizations
- $10 million Hardship Lending Program to support residents and businesses affected by the flooding
- $700,000 in donations to organizations that offered pandemic assistance
“We recognize that now, more than ever, we can make a difference and help our customers,” said Dahl.
Blackstone & Hudson complete Hollywood joint venture
Blackstone and Hudson Pacific Properties, Inc. have completed the joint ownership transaction for some of the most iconic, century old properties in Hollywood with a gross valuation of $1.65 billion, which as reported by NEXT, initially became public on June 29, 2020.
Through funds affiliated with Blackstone Property Partners, Hudson and Blackstone announced they have completed the acquisition by Blackstone of a 49% interest in Hudson’s Hollywood Media Portfolio. Hudson will retain a 51% ownership stake and remains responsible for day-to-day operations, leasing and development.
Upon closing the joint transaction, the owners closed a $900 million mortgage loan secured by the portfolio that has an initial interest rate “subject to final bond pricing, of LIBOR plus 2.15% per annum,” according to a joint statement. The mortgage is interest only through a two-year term with three one-year extension options.
Hudson’s proceeds from the sale of the 49% portfolio interest and its share of asset-level financing will amount to $1.27 billion before closing credits other costs.
Hudson said it expects to use approximately $780 million from the proceeds “to repay all outstanding amounts under its revolving credit facilities and Term Loans B and D, due in the second and fourth quarter of 2022, respectively.
Assets in the portfolio consist of three Hollywood studios and five on lot or adjacent Class A office properties, totaling 2.2 million square feet.
Sunset Bronson, Sunset Gower and Sunset Las Palmas Studios “collectively comprise 35 stages or 1.2 million square feet of production and support space in Hollywood,” leased to top media clients.
Headquartered in Los Angeles, Hudson plans to use at least some of the proceeds for potential future investments. The company is a publicly traded real estate investment trust (REIT) focused on office and studio properties in the West Coast, whose tenants also include Netflix, Google, Square, Uber, NFL Enterprises.
Both investors said they see “opportunities to further expand the joint venture’s portfolio,” according to a joint release.
Paragon refis $57.2M in HUD multifamily loans
Multifamily rental property owners are showing homeowners that they’re not the only ones interested in taking advantage of the historically low interest rates. Jim Swanson, president of Paragon Mortgage Corporation, a US Department of Housing and Urban Development (HUD) approved mortgage lender “solely focused on HUD-insured financing” for over 33 years, said his company has been busy arranging the refinancing for such properties nationwide.
Most recently, the Phoenix, Ariz., company closed two HUD property refinancing transactions totaling $57.2 million.
“The current economic environment combined with the extremely low interest rates provide for an opportune time to refinance multifamily properties and reduce financial risk exposure during these uncertain times,” Swanson said.
In Clovis, New Mexico, Paragon arranged the refinancing of Apartment Communities Raintree I and Raintree II by securing a $11.2 Million loan for Raintree I and a $7.6 Million loan for Raintree II, through the HUD 223(a)(7) mortgage insurance program.
The loan features low interest rates, 40-year term, fully amortized, non-recourse financing to restructure and lower the current debt service costs, Swanson said.
Raintree I and Raintre II properties consist of 256-market rate apartments located in Clovis. The amenity rich apartment community includes spacious one, two, and three bedroom apartment homes in a gated area with a pool and spa, 24-hour fitness center, business center, garages, storage spaces.
In Euless, Texas, a suburb of Dallas, Paragon arranged the refinancing of The Franciscan at Bear Creek Apartments.
The $38.4 million HUD 223(f) mortgage insurance loan featured a low interest rate, 35-year term, fully amortized, non-recourse financing “to restructure the property debt and fund minor repairs to the property.”
“During these uniquely challenging times, we appreciated the cooperation and commitment of all parties involved,” Swanson said.
Amilda is a journalist and branding consultant interested in how entrepreneurs turn brilliant ideas into products and services that advance business acumen and improve people’s lives in unprecedented ways. She has covered mortgage finance for over 15 years.
