By Dees Stribling, Contributing Editor
Corsicana, Texas—The owner of Lago de Plata Apartments, an affordable community in Corsicana, Texas, has obtained a $4.5 million FHA 223(a)7 loan to refinance the property. Proceeds from the loan will be used for repairs and to replace reserve escrows.
Under the terms of the 223(a)7 program, existing HUD mortgages can be refinanced to the original loan balance with reduced documentation and quicker processing times to lower the interest rate. In this case, the interest rate was dropped from 6 percent to 3.1 percent.
Also, the loan is fully amortizing over 37 years, since 10 years was added to the initial loan maturity.
Lago de Plata Apartments consists of 150 rental units housed in 14 garden-style buildings originally built in 1970 but substantially renovated in the early 2000s with the aid of a HUD 221d4 new construction/rehab loan. The property has a 20-year HAP contract that was renewed in 2012.
The property includes a mix of one-, two- and three-bedroom apartments, plus three- and four-bedroom townhomes. Amenities include a swimming pool, gazebo, community center with kitchen, laundry room, playground and learning center.
Bryan Cullen and Sandra Rothe of Centerline Capital Group, a subsidiary of Centerline Holding Co., originated the loan. Centerline is a Fannie Mae DUS lender, Freddie Mac seller-servicer, FHA-approved mortgage provider, bridge and CMBS lender and source for other forms of alternative capital.
The owner of Lago de Plata Apartments is a 501c3 nonprofit corporation. Located in Navarro County, Corsicana is about 55 miles southwest of downtown Dallas.