DEAL OF THE DAY: HFF Closes $7M FHA 223f Loan for 55-Unit Rental Community
- Mar 06, 2009
By Anuradha Kher, Online News EditorPortland, Ore.–The Portland office of HFF (Holliday Fenoglio Fowler L.P.) has arranged a $7.05 million FHA 223f loan for The 2020 Building, a 55-unit multifamily community in Portland, Ore.HFF worked on behalf of the borrower, 2020 Building LLC, to secure the acquisition/rehab loan through an FHA lending source. The financing is structured as a 35-year, non-recourse, fully amortizing loan with a 6.45 percent fixed all-in coupon rate (includes HUD mortgage insurance premium). All in loan-to-cost was 79 percent (lender’s underwritten costs).This is the first-ever FHA 223f loan closed by HFF. Eligible borrowers for FHA 223f loans must be single-asset entity borrowers that are acquiring or refinancing multifamily rental properties.The 2020 Building, formerly Hadley House Apartments, is located at 2020 Southwest Salmon St. in the Washington Park area of downtown Portland. The 1963 property is undergoing a renovation of the exterior, common areas and apartment interiors, which is due for completion in late 2009. The 2020 Building has two studios, 39 one-bedroom and 14 two-bedroom units that were 80 percent leased as of Fall 2008.