BETHESDA, MD – Berkeley Point Capital LLC recently facilitated a $10,423,000 Federal Housing Administration (FHA) insured loan for the refinance of a 264-unit garden-style, class-C, apartment community located in Lancaster, PA. The property is 100% affordable as it is subject to rent and income restrictions at 60% of AMI under the LIHTC program and has a project based Section 8 contract for a 130 of the 264 units.
Financing was arranged under HUD’s Section 223(f) Mortgage Insurance Program and was structured to be a fully amortized loan based on a 3.09%, 35-year, fixed-rate note. Proceeds were used to pay-off an existing FHA 221(d)(4) loan that was financed with Berkeley Point’s predecessor firm in 2009. Per the sponsor’s request loan proceeds were constrained and conservatively underwritten at 73% loan-to-value. Berkeley Point Capital’s Nemo Hannafin of its Bethesda, MD office led the Berkeley Point team.
The sponsor is a real estate investment company focused on acquiring, stabilizing and preserving federally assisted multifamily rental properties throughout the United States. Furthermore, their focus is to physically stabilize and preserve the affordability of housing for low and moderate income residents using a full range of public and private resources.
As part of the 2009 financing, the property was recapitalized using Tax Credit Exchange Funding provided by both the Pennsylvania Housing Finance Agency and the City of Lancaster HOME Funds. As part of the plan to stabilize and preserve the property, the existing Section 8 subsidy was extended in 2010 to a 20-year term post renovation to ensure ongoing affordability. Furthermore, the LIHTC Agreement will be effective throughout the life of this refinance. The substantial rehabilitation included the conversion of units for handicap accessibility, as well as interior and exterior renovations totaling over $10 million. Originally constructed in 1972, the property now benefits from major kitchen and bathroom upgrades, new flooring, windows, and doors as well as many new property amenities.
“FHA continues to be a key source of capital for multifamily acquisition and refinancing. With interest rates at historical lows and recent enhancements to HUD underwriting, the 223(f) program provides some of the most competitive loans in the nation right now,” states Steve Wendel, Executive Managing Director at Berkeley Point Capital. “We are pleased to once again work with this sponsor to provide financing. By leveraging our experience with HUD, we were able to create a well-structured loan that provided cash-out and a low P&I payment, while preserving the property’s affordable housing objectives.”
For further information contact:
Janelle Cooper, Marketing & Communications
301-347-4823 | janelle.cooper@berkpoint.com
about berkeley point capital
Berkeley Point Capital LLC is one of the nation’s leading providers of multifamily capital solutions. The firm boasts a 25+ year history and a servicing portfolio of over $28 billion representing in excess of 2,100 loans in 45 states and the District of Columbia. This extensive and diverse national platform allows us to provide our clients with superior execution in every market in the country.
Berkeley Point is owned by entities affiliated with Ranieri Real Estate Partners LP and WL Ross & Co. LLC. As part of its multifamily expertise, the firm offers the full complement of Fannie Mae, Freddie Mac, FHA, and Life Company products as well as a proprietary bridge program.
Focusing on a three-pronged strategy of exceptional people, unique multifamily capital solutions and superior technology, our team of more than 200 people located in eleven offices across the nation, provides our customers a competitive advantage through speed, creativity, ease of interface and certainty of execution, and superior service beyond the closing of the loan.
For more information on Berkeley Point Capital, please visit our website at www.berkpoint.com