Historic Westward Ho Goes Modern
- Aug 12, 2015
The historic Westward Ho Apartments community in downtown Phoenix is in for a makeover.
Berkadia has recently originated a $14.1 million loan for the property on behalf of its current owner, Cathedral Development Group Inc. The proceeds of the loan, as well as an almost equal amount generated by low income housing and historic tax credit equity investments, will be used to pay existing subordinate debt on the property and finance future construction and property upgrades.
The Westward Ho Apartments community started out as a 600-unit luxury hotel. It was later converted into affordable housing for elderly and disabled residents, when an affiliate of the current owner purchased the building.
Managing Director Richard Price of the Bethesda, Maryland office secured a fixed rate construction and permanent financing through the firm’s HUD/FHA Section 221 (d)(4) Program. The loan, which was processed under HUD’s expedited Tax Credit Pilot Program, includes a fully amortizing 36-year repayment schedule.
“This was an extremely complex transaction involving an iconic, historic property that will now be preserved for decades to come and provide quality, affordable housing to hundreds of low income residents,” Richard Price said in a prepared statement. “The loan was processed and closed in just 90 days to meet certain deadlines thanks to the tremendous support of HUD professionals in both Phoenix and San Francisco offices.”