TODAY’S DEALS: Love Funding Arranges FNMA Processing to Close $9.62M Refi Loan for 156-Unit Rental Community, and Other Transactions

By Anuradha Kher, Online News EditorElkton, Md.–Love Funding recently arranged FNMA processing to close a $9,625,500 refinance loan for the Apartments at Iron Ridge, a 156-unit multifamily apartment property located in Elkton, Md. The property is located on a 12.9-acre parcel on the eastern side of Iron Hill Road in Cecil County, Md. There are 16 two-story walk-up buildings totaling 174,296 square feet. The community features 14 one-bedroom, 78 two-bedroom and 64 three-bedroom and two-bath units ranging in size from 942 to 1,324 square feet. Amenities include a tennis court, swimming pool, children’s play area, weight room and clubhouse, and the current occupancy rate of the facility is 93 percent. Terms of the 30-year amortizing/10-year term, non-recourse loan include a loan-to-value ratio of 60 percent and a Debt Service Coverage of 1.56. The loan was limited to 100 percent of the borrower’s request.Laura Saull-Smith, senior vice president of the firm’s Washington, D.C. office, who arranged the loan, says, “At the time of the original HUD 221(d) 4 financing, we locked in at a competitive 7.75 percent rate; however, with the new FNMA financing, we’ve been able to offer a much lower rate, resulting in annual debt service savings of over $123,000. Moreover, my client was able to take out additional equity for potential future projects. With the state of the economy and uncertainty in the markets, having a little extra cash on hand never hurts.”Meridian Arranges Permanent Financing of Over $5MLos Angeles–Meridian Capital Group has arranged permanent financing of $5.4 million for two properties totaling 64 multifamily units in Southern California.Managing Director Alex J. Katz of Meridian’s Los Angeles office represented the local undisclosed borrowers to secure 10-year fixed interest rates of 5.57 percent and 5.72 percent respectively.   “We couldn’t have timed these rate locks any better, given the recent dramatic rise in long-term treasury yields. Our clients were thrilled with the comparatively low spreads we were able to negotiate just before rates spiked,” says Katz.