Walker & Dunlop Arranges HUD Loans for New England Portfolio

The Sparrows Point II property is located in Warwick, R.I. Image courtesy of Walker & Dunlop

Walker & Dunlop has arranged six U.S. Department of Housing and Urban Development loans totaling $135.3 million for a half-dozen Rhode Island properties. The assets in the portfolio, owned by Carpionato Group, total more than 1,000 affordable units.

The Walker & Dunlop HUD Financing team, led by Chris Rumul, were Carpionato Group’s exclusive advisors. Francis Spinella, president of FJS Associates, was the lead refinancing consultant for all six assets. The properties were refinanced between October and February.

The team worked with the U.S. Department of Housing and Urban Development to complete the financing through HUD’s FHA Section 223(f) program, which allowed the owner to secure six fully amortizing long-term loans and included an option to cash out equity at 1.11x debt service coverage rate to make repairs.

The HUD financing ensures long-term affordability for the properties’ residents over the next several decades. The assets, Riverbend, Sparrows Point I, II and III, Scituate Vista and Meshanticut Vista, will also undergo immediate and short-term repairs and receive additional funds to help further support Carpionato Group’s affordable housing efforts.

Carpionato Group is a longtime HUD client of Walker & Dunlop, with six HUD-insured loans currently in the company’s servicing portfolio.

Rhode Island properties

Three of the properties are located in Cranston, R.I., and three are situated in Warwick, R.I. All of the properties except Riverbend are project-based Section 8 developments for residents 62 and older or for those with disabilities. The portfolio comprises:

• Meshanticut Vista at 225 New London Ave., Cranston, which has 140 apartments, with 126 one-bedroom and 14 two-bedroom units.
• Riverbend at 575 Dyer Ave., Cranston, which has 168 apartments, with 51 one-bedroom units, 84 two-bedroom units and 33 three-bedroom units. The property is a multifamily project-based Section 8 development..
• Scituate Vista Apartments at 115 Scituate Vista Drive, Cranston, which has 232 apartments with 154 one-bedroom midrise apartments, 54 one-bedroom townhouses, 16 two-bedroom midrise apartments and eight two-bedroom townhouses.
• Sparrows Point I at 341 Hardig Road, Warwick, which has 151 apartments with 135 one-bedroom units and 16 two-bedroom units.
• Sparrows Point II at 777 Cowesett Road, Warwick, which has 151 apartments with 135 one-bedroom and 16 two-bedroom units.

• Sparrows Point III at 355 Hardig Road, Warwick, which has 176 apartments with 157 one-bedroom and 19 two-bedroom units.