Holly Bray, senior director at Love Funding, said the transaction will allow the owners to pull out sufficient funds to cover a $1.3 million roof replacement and other property improvements.
Love Funding also closed a $3.91 million loan to refinance Center West Villas, a 160-unit Augusta, Ga. apartment community, through HUD’s 223(a)(7) loan program. The program enabled the owner to reduce the interest rate and extend the loan back to its original 35-year term, generating more than $43,000 in annual debt service savings. The refinancing will also increase the property’s reserve fund by about $153,000 and pay for about $125,000 in needed repairs.
“The permanent debt on the property was originally provided through HUD’s 223(f) program in 1994. It was later refinanced through the 223(a)(7) program in 2003. The program allows up to 12 years to be added to the remaining term on existing HUD-insured loans, as long as it does not exceed the original term,” said Love Funding senior director William Jones Jr.
Finally, Love Funding closed a $7.33 million loan refinancing Aspen Village Apartments, a 180-unit market-rate apartment community in Pullman, Wash., also through HUD’s 223(a)(7) program. Mortgagor Aspen Village extended the loan back to its original 39-year term, generating more than $238,000 in annual debt service savings.
The Aspen Village Apartments community used financing secured through HUD’s 221(d)(4) loan program when built in 2001.
Written by Michael Tucker via MBA NewsLink