Love Funding, one of the nation’s leading providers of FHA multifamily and healthcare financing, announced the closing of a $19.5 million loan refinancing for The Overlook at Piermont, a 106-unit market-rate apartment complex in Piermont, New York.
Love Funding Vice President Artin Anvar secured the loan through the U.S. Department of Housing and Urban Development’s 223(f) loan program. Using the program enabled the property’s owner to lock in a low, fixed interest rate over a 35-year term, generating substantial debt service savings.
The borrowers purchased the property in 2007 and invested nearly $10 million over the next two years to rehabilitate the units by making overdue repairs and adding high-end finishes such as granite countertops, hardwood floors, and stainless steel appliances. Located about 12 miles northwest of Manhattan, the project is only one of a handful of newly refurbished apartment projects in the area that remain committed to providing high-quality, market-rate housing options.
“With so few developers focused on new market-rate projects in the area, it is vital that existing properties be maintained and improved,” Anvar said. “The owners spent considerable resources to upgrade the property and it shows.”
This was the first time that the project’s sponsor, Redbrick Partners LLC, used a HUD loan insurance program to finance a property in its real estate portfolio. The firm invests in opportunistic and value-added residential and mixed-use projects throughout the mid-Atlantic and northeast.
“Being able to lock in long-term, non-recourse financing in today’s low interest rate environment was extremely attractive to us,” said Tom Skinner, a managing partner at Redbrick Partners. “We were able to move quickly to closing once we received the HUD commitment thanks to Artin’s and Love Funding’s ‘all hands on deck’ attitude.”
For more information, contact Artin Anvar.