Love Funding, one of the nation’s leading providers of FHA multifamily and healthcare financing, announced the closing of a $14 million refinancing for the Packard Building, the site of a former Seattle car dealership recently converted into a 60-unit mixed-use apartment complex.
Love Funding First Vice President and Senior Loan Originator Peter Wessel of the Denver office secured the loan through the U.S. Department of Housing and Urban Development’s 223(f) loan program. Utilizing the program enabled the property’s developer to obtain a low interest rate, non-recourse loan with a 35-year term.
The property’s owners tried unsuccessfully to tap private sources for a refinancing after completing a major rehabilitation in late 2009 that introduced 56 new market-rate residential units, along with five office units and four retail spaces. Four of the five office spaces were converted to apartments in January 2011. Wessel worked with HUD’s Seattle office to obtain a waiver from the agency’s rule against extending long-term FHA financing for properties less than three years old.
The Packard Building is Wessel’s second HUD loan transaction in as many months. In November, he arranged a $26 million construction-to-permanent loan for RiNo Center, a new market-rate apartment project in Denver.