Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of a $20.7 million loan refinancing for Paddington Square Apartments, a 165-unit apartment community in Silver Spring, Maryland.
Love Funding Senior Director Laura Saull-Smith of the Washington D.C. office secured the loan through the U.S. Department of Housing and Urban Development’s 223(f) loan program. Using the program will enable the borrower to lock in a fixed, low-rate, non-recourse loan with a term of 35 years and consolidate outstanding debt.
Paddington Square, which was originally built in 1960, is an affordable/market rate rental property operating under the Housing Innovations Fund (HIF) program offered by the Montgomery Country Housing Opportunities Commission (HOC). Pursuant to the program, the property restricts 40 percent of its units for persons of low and moderate incomes.
In 2004, the property was acquired by Paddington Square Development Corp., a non-profit corporation controlled by the HOC. At the time of the purchase, the property was poorly maintained and its staff received approval from the HOC to conduct a $5.6 million renovation that includes electrical upgrades, replacement of all HVAC systems and central water heaters, and roof replacement. HOC approved a second phase of the rehabilitation in 2009, which was later amended to bring the total commitment to $11.2 million.
“The borrower put so much work into this property, it’s great to see them be able to take advantage of low-cost FHA financing to pay down a good share of that debt,” Saull-Smith said. “That’s really what these programs are built for: helping to preserve and improve affordable rental options. In this case, the borrower completely turned this property around.”
For more information, contact Laura Saull-Smith at (202) 887-1851.