Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of a $18.25 million loan to be used for acquisition and renovation of Chickasaw Place Apartments in Memphis, Tennessee.
Love Funding Senior Director Tammy Tate secured the loan through U.S. Department of Housing and Urban Development’s 223(f) loan insurance program. The HUD program provided the development team with low-rate, long-term, non-recourse financing to purchase the IOI property and to fund updates to the entire project. In conjunction, the project will utilize 4% Low-Income Housing Tax Credits with Tax-Exempt Bonds allocated by the Tennessee Housing Development Agency and Tax-Exempt Bonds issued by The Health, Educational, and Housing Facility Board of the City of Memphis. The scope of the proposed renovation is approximately $9,450,000 ($34,800/unit).
“Love Funding has been a lending partner of ours for nearly 20 years. During that time they have provided loans for properties as small as 23 units to our most recent loan for 270 units at Chickasaw Place Apartments,” commented Robert Hyde, President of ALCO Management. “The loan for Chickasaw Place Apartments is our largest loan to date with Love Funding and will enable us to improve the homes and provide additional amenities to our residents for many years to come. We are grateful to have Love Funding as our partner to achieve our vision of Building Community throughout the southeast.”
The project currently consists of 272 units within 25, two and three-story apartment buildings. Two units are planned to be converted to non-revenue units to be used for a community room and fitness room. Post-renovation, the subject will consist of 270 revenue units. All units are covered under a project-based Section 8 Housing Assistance Payments (HAP) contract that runs for a period of 20 years, along with a with mark-up-to-market (post-rehab) rent increase and the assignment of the HAP contract to the IOI purchaser. The project also includes a lower mortgage insurance premium of 0.25%.
The property is being managed by Alco Management, Inc. of Memphis, Tennessee.
For more information, contact Tammy Tate at email@example.com or 865.386.4039