Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of two loans totaling $7.4 million to refinance the debt of three market-rate apartment communities in Missouri and Illinois.
The properties refinanced are Mississippi Lofts, a 36-unit loft community housed in a fully rehabilitated former shoe factory in the Lafayette Square neighborhood of the City of St. Louis; Bradford Place, a 68-unit garden-style apartment community in Belleville, Illinois; and Ansley Oaks, a 69-unit garden-style apartment community in O’Fallon, Illinois.
Mississippi Lofts is indirectly owned by Kevin Kloster, who acquired the property in 2001 and redeveloped it utilizing federal and state historic tax credits. Bradford Place and Ansley Oaks were both purchased together in 2000 as a single investment but initially financed separately. The current owner, Fedcar LLP, is refinancing to consolidate the loans and reduce the debt service, improving cash flows and allowing for upgrades.
The two loans were secured by Love Funding Senior Director Harry Cheatham and Director Brian Robertson and insured through the U.S. Department of Housing and Urban Development’s 223(f) mortgage insurance program. The program facilitates the purchase or refinancing of existing multifamily rental housing. Although all these properties were market-rate, the 223(f) program also finances affordable properties.