Love Funding, one of the nation’s leading providers of FHA multifamily and healthcare financing, announced the closing of a $26.5 million loan refinancing for Fox Ridge Apartments, a 328-unit market-rate apartment community in Longmont, Colorado.
Love Funding Senior Director Peter Wessel of the Denver office secured the loan through the U.S. Department of Housing and Urban Development’s 223(a)(7) loan program. The program allows the refinancing of debt on existing multifamily properties previously funded through FHA-insured mortgages, as long as they do not require substantial rehabilitation. It also allows up to 12 years to be added to the remaining loan term, without exceeding the original term. In this case, Wessel was able to extend the loan back to its initial 40-year term.
The transaction is the second refinancing arranged by Wessel in two years for the property’s ownership group, and will generate more than $175,000 in annual debt service savings. Interest rates near record lows have helped many multifamily property owners reduce their debt burden and improve their cash flows.
“With economic conditions improving, Federal Reserve policy makers will likely not be as accommodative as they have been in recent years,” Wessel said. “Property owners who haven’t refinanced recently would be wise to evaluate their options before interest rates increase in a meaningful way.”
For more information, contact Peter Wessel at (303) 777-5016.