MUSA Provides $39.6M FHA 221(d)(4) Construction/Permanent Loan
- Jan 29, 2013
Dallas—Dallas-based MUSA Financial LLC has provided construction/permanent financing of $39,638,400 million for the building of Hebron 121 Station Phase Two, a multifamily development of Huffines Communities. The 444-unit community is adjacent to the company’s previously built and fully occupied first phase of the development which contains 250 units.
The construction loan will be dispersed in monthly advances over a 24-month period, before rolling over into a permanent loan that will amortize over 40 years. The term for the combined loan is 40 years.
The development is part of a 427-acre City of Lewisville reinvestment zone north of Dallas. It will eventually include more than 1,700 apartment rental units and more than 20,000 square feet of commercial/retail space, creating the largest transit-oriented development in Texas.
Mortgages USA is located in Dallas. Nationally known multifamily financial executive Bernard P. “Bud” Malone is a full partner in the company and CEO in charge of the firm’s multifamily division. His partner, Jeff Morgan, is chairman/president of the company.
“We are very excited to get this terrific financing program accomplished,” said Malone “This is the largest project that HUD has insured through the Section 221(d)(4) program for this regional area. I think Hebron 121 Station Phase II will be very successful because of its location on the Lewisville Transit Development line, allowing residents to use mass transit for both work and play.”
Bascom continues buying spree with 194-unit acquisition
Flagstaff, Ariz.—Bascom Arizona Ventures has acquired Alpine Ridge Apartments, a 194-unit community located in Flagstaff, Ariz., for $13.6 million. The purchase was made on behalf of a fully discretionary fund. Arizona-based Morrison, Ekre & Bart Management Services will provide onsite management. This acquisition comes on the heels of Estates at Maryland, a 330-unit Class A community located in Phoenix; Coldwater Springs, a 301-unit Class A community located in Avondale, Ariz., Brookstone at the Foothills, a 528-unit Class B community located in Phoenix; and Madera Point, a 256-unit Class B community located in Mesa.
“After our successful 12-property portfolio sale in 2007, we feel now is the best time to buy back into the Arizona region,” says Mark Brotherton, asset manager at Bascom Arizona Venture. “This will be our fifth purchase in the past six months, and we are looking to expand even more with additional acquisitions slated to close in the next month. With Flagstaff’s high barrier to entry, NAU’s extensive expansion plan, and the shortage of student housing, Alpine Ridge offered us a very attractive value-add opportunity.”
Alpine Ridge is a 1992-built Class B asset situated on 6.71 acres. It is the closest privately owned asset to Northern Arizona University.
Centerline Capital provides $4M refi for Wisconsin seniors asset
Stoughton, Wisc.—Centerline Capital Group has provided a $4 million FNMA Affordable Preservation loan facility to refinance Rosewood Apartments, an age-restricted, garden-style affordable housing property located in Stoughton, Wisc. At closing, the property was outside the 15-year tax credit compliance period, but within the 15-year extended use compliance period. Portions of the proceeds from the cash out refinancing will be used to pay off existing hard debt and unsecured debt held by Centerline Capital Group. The borrower is Stoughton Senior Housing Limited Partnership.
“The loan facility we put into place for Rosewood Apartments taps Fannie Mae’s extended rate lock program which allowed the borrower to minimize rate risk while waiting for the end of the current prepayment structure,” says Suzanne Cope, senior vice president of debt originations at Centerline Capital Group. “Our team worked quickly to identify the best loan program for the borrower. The borrower was thrilled that we were able to push proceeds with a strong appraisal and ended up closing on higher proceeds than promised at application.”