Love Funding, Washington, D.C., closed a $32.1 million construction-to-permanent loan for a Lakewood, Colo. apartment community under development.
Senior Director Peter Wessel secured funding for 244-unit Village at Oak Street through HUD’s 221(d)(4) loan program, which enabled the developer to lock in a low interest rate during the 20-month construction period and 40-year permanent loan term.
Wessel said the site’s original building--a 1966-vintage former Target department store--will be replaced by seven three-story residential buildings, a clubhouse, maintenance building and five garage buildings.
Located a quarter mile from a new light rail line, Village at Oak Street will become the first transit-oriented development project in Lakewood. Scott McFadden, who managed the Mountain States division of Trammel Crow Residential before starting his own firm, leads the development team.
Love Funding also closed a $4.92 million acquisition loan for Graceland at Garden Ridge, a 46-bed assisted-living and memory care center in Garden Ridge, Texas.
Senior Director Leonard Lucas of Love’s Boston office secured the loan for buyer Cara Graceland LLC through HUD’s Section 232/223(f) LEAN program for healthcare facilities.
Lucas said HUD had exhausted its loan commitment authority from Congress during the loan application process, which prevented the agency from issuing a firm commitment. Love Funding offered Cara Graceland LLC bridge financing against its own balance sheet to prevent the original purchase and sale agreement from expiring.
“Had the purchase and sale agreement expired, the borrower would have lost his deposit and all costs associated with the transaction,” Lucas said. “We were in a position to step up and prevent that from happening.”
Source: MBA NewsLink