The firm closed a $6.56 million loan through HUD's 223(a)(7) loan program for borrower Snow Asset Management, Watermill, N.Y., to refinance the Brandywine at Amherst Apartments, a 180-unit Amherst, Mass., rental community. The 223(a)(7) refinancing program for existing FHA-insured apartments allows an additional 12 years on the remaining term of the existing loan, as long as it does not exceed the original term.
Laura Saull-Smith, senior director at Love Funding, said the refinancing let Snow "lock in a low fixed interest rate and extend the loan back to its original 35-year term, generating more than $90,000 in annual debt service savings." Saull-Smith said Love Funding refinanced the property for Snow twice before.
Love Funding's Columbus, Ohio office also closed a $5 million loan through HUD's 232/223(f) program for borrower Vrable Healthcare to refinance Heritage Manor Skilled Nursing and Rehabilitation Center in Minster, Ohio, a 61-unit nursing facility.
"Using the [232/223(f)] program enabled [Vrable] to lock in a low fixed interest rate over a 33-year term, generating approximately $215,000 of additional cash flow each year, plus $215,000 for repairs and replacement reserves," said Robert Smallwood, Love Funding senior director.
HUD's 232/223(f) loan insurance program allows for the purchase or refinance of three-plus-year-old senior housing properties that have not been rehabilitated in the last three years.
Written by Michael Tucker via MBA NewsLink