Love Funding closed $51.2 million in loans to refinance four mixed-income apartment communities in Texas, three of which are age-restricted.
The four properties being refinanced are Villas in the Pines, Villas at Pine Lake and Villas on Woodforest in Houston; and Villas by the Lake in Ft. Worth. The properties offer a total of 908 apartment units built between 1998 and 2001 with the assistance of low-income housing tax credits (LIHTCs). All four communities are owned by related entities of The Wentwood Companies and managed by Westlake Housing, both based in Austin.
Love Funding secured the financing for the Villas portfolio through the U.S. Department of Housing and Urban Development’s 223(f) loan program. Using the program provided the development team with low-rate, non-recourse financing to refinance the existing loans, purchase the current ILP interest, fund property improvements and provide a permanent financing solution. The borrower was able to take advantage of the recently implemented programmatic changes for affordable properties, including a lower mortgage insurance premium rate and a higher leverage loan constraint.
The portfolio of deals was closed in just five months, compared to a typical underwriting and closing process of six to eight months. When the firm application was submitted to HUD for review in mid-March, Love Funding simultaneously began the legal process. The HUD firm commitments were issued in the last week of May and the first week of June, and the closing team and legal team worked together with HUD and the borrowers to close by the target date of June 30th. The expedited process saved the borrower substantially by avoiding an additional exit fee from the existing bridge loans being refinanced.
Robert Turner, CEO of The Wentwood Companies commented, “We were under a tight timeframe to complete the refinances of the Villas properties. The Love Funding team guided us all the way through and enabled us to beat our deadline. They possess a tremendous amount of knowledge and expertise, both of which are essential when using the HUD programs.”
Mr. Turner founded what would become the Wentwood Companies in 1992. With offices in Texas, Oregon and Ohio, Wentwood currently manages 46 funds with original capitalization of $7.5 billion and property investments across 47 states and Puerto Rico.