Dealmaker: Love Funding Secures $52M for Three Multifamily Properties
Love Funding, Washington, D.C. secured $52.4 million for multifamily properties in Washington, Alabama and South Carolina.
In Pullman, Wash., Love Funding Director Brian Robertson arranged $29.8 million to refinance Pimlico Apartments. The property has 361 one-, two-, and three-bedroom market-rate units within walking distance of Washington State University. It delivered in two phases in 2013 and 2014.
Robertson secured the loan through HUD’s 223(f) loan insurance program.
In downtown Montgomery, Ala., Love Funding closed an $11.8 million loan to convert a commercial high-rise building into Historic Bells Lofts, a market-rate loft apartment community.
Love Funding Senior Director Holly Bray secured the funding using HUD’s 221(d)(4) loan insurance program. The transaction was also supported by federal historic tax credit equity from National Trust Community Investment Corp. and state historic tax credits purchased by First Partners Bank.
When completed, Historic Bells Lofts will offer 88 one- and two-bedroom apartments and 4,500 square feet of white box commercial space in what was formerly called the Bell Building. The 12-story high rise was the tallest in downtown Montgomery when built in 1907. The building was added to the National Register of Historic Places in 1981.
Red Leaf Development LLC and MAL LP are developing the property with WDG Construction and Development Services. They will undertake a near-gut rehabilitation and replace all mechanical systems.
Love Funding also closed a $10.8 million loan for the construction and permanent financing of Lofts by the Lake at Apalache Mill, a proposed market-rate apartment community in Greer, S.C.
The project involves substantially rehabilitating a two-building former textile mill to become loft-style residential apartments. Once completed, Lofts by the Lake at Apalache Mill will offer 97 one- and two-bedroom units. The 7.2-acre property was originally developed in the mid-1830s, and the first modern mill was constructed as a brick facility in 1988.
Love Funding Senior Director Tammy Tate arranged the loan through the 221(d)(4) loan insurance program, which provided non-recourse financing throughout construction and for a subsequent 40-year term. The transaction also made use of federal and state historic tax credits and state textile mill credits.
Because most tax credits are not available until final completion, Tate also helped arrange a bridge loan for the borrower through Love Funding parent company Midland States Bank.
