Love Funding Arranges $54.4M Loan
- Oct 10, 2011
West New York, N.J.—Love Funding announced the closing of a $54.4 million loan refinancing for Parkview Towers, a 688-unit apartment community in West New York, N.J. that was the first ever project-based Section 8 property approved by the state.
Love Funding Senior Vice President and Senior Loan Originator Laura Saull-Smith secured the loan through the U.S. Department of Housing and Urban Development’s 223(f) loan program. Utilizing the program enabled the borrower, Parkview Towers LLC, to preserve the property’s affordable housing status and finance needed repairs, reserves and upgrades totaling in excess of $7 million, or more than $10,000 per unit.
“The long-term, fully amortizing, non-recourse financing that the FHA 223(f) program permits enables owners to save substantial amounts in annual debt service costs, particularly in this historically low rate environment,” says Saull-Smith. “Repairs, reserves and closing costs can usually be funded out of loan proceeds.”
Parkview Towers was built in 1974 and has 684 units that qualify for a federal rent subsidy pursuant to Section 8 of the U.S. Housing Act of 1973. As part of the refinancing, the owners committed to add 20 more years onto the existing Section 8 contract, allowing residents there to enjoy subsidized rents until the property’s maximum allowable term expires in 2031.
“We are dedicated to preserving Parkview Towers’ vital role as a high-quality, affordable housing option in the New York metropolitan area,” says Lisa D’Alessandro, one of the property’s owners and senior vice president of Parkview Management Corp. “This refinance will help ensure that our residents are able to maintain the quality of life the property has provided for more than 30 years.”
ARA’s Central Florida team represents TIC in $89,670/unit sale
Tallahassee, Fla.—The Jacksonville office of Atlanta-headquartered ARA announced the sale of Jackson Square Apartments, a 242-unit, Class A garden apartment community located in the Thomasville submarket of Tallahassee, Fla.
ARA Central Florida-based principal, Kevin Judd and vice presidents, Patrick Dufour and Matt Wilcox, represented the T.I.C seller in the $21.7 million transaction. The property was 95 percent occupied at the time of the sale.
“By their nature, TIC sales can be challenging due to the high number of constituents involved in the decision making process. In this case, the TIC was comprised of a total of 40 individual investors who had to approve the sale. Further complicating the process was the limited reps and warranties for the buyer. Due to the nature of the TIC structure, the seller’s ownership entity evaporates after the sale.” Says Tampa-based Dufour.
“The Jackson Square transaction is representative of the types of deals leveraged buyers are seeking,” says Jacksonville-based Wilcox. “The property is in a core, infill location with immediate access to all the Class A retail and neighborhoods in the northern portion of the city. With some slight repositioning and capital infusion, the property stands to perform well as the Tallahassee market’s pipeline is limited and the employment sector is stable due to the Universities and State Government.”
Constructed in 1996, Jackson Square is located less than three miles from downtown Tallahassee and its largest employment sector; the state government. As the state’s capital, the state government employs approximately 46,000. Additionally, Florida State University, the third largest in the state, is located just three miles north of the apartment community.