Dealmaker: Love Funding Secures $35M for Multifamily Properties
Love Funding, Washington, D.C., secured $35 million to refinance two Michigan multifamily properties and to construct a Texas apartment community.
In Superior Township, Mich., Love Funding Midwest Regional Director Bruce Gerhart secured $11.3 million through the HUD 223(f) loan insurance program for Larc Community Development Group, Southfield, Mich., to refinance Danbury Park Manor.
Most of Danbury Park Manor’s 151 units are subsidized under a Section 8 Housing Assistance Payment contract with five units subsidized under Section 236.
“The HUD program provided the development team with low-rate, non-recourse financing for a 35-year term,” Gerhart said.
Gerhart also secured $5.2 million to refinance Bay Hill II Apartments, a mixed-income multifamily community in Traverse City, Mich.
Bay Hill II Apartments includes 36 market-rate units and 36 affordable units backed by low-income housing tax credits and restricted to people earning 60 percent of the area median income or less.
The 72 apartments are a mix of one-, two- and three-bedroom units originally constructed in 1999 and opened in 2000. The property’s ownership group is led by Hollander Development Corporation and Great Lakes Traverse City Developers, and it is managed by KMG Prestige.
Gerhart secured the financing for Hollander Development Corporation and Great Lakes Traverse City Developers through the HUD 223(f) loan insurance program. “Part of the proceeds from the transaction will be used to pay for needed repairs and fund a new reserve account,” he said.
In Leon Valley, Texas, Love Funding secured $18.5 million in construction and permanent financing for Valencia Lofts, a new market-rate apartment community under development.
The HUD 221(d)(4) loan insurance program provided the development team with low-rate, non-recourse financing for the duration of construction and for a subsequent 40-year term.
When completed, Valencia Lofts will include 192 rental units on nine acres northwest of San Antonio. The development venture included Davila Construction and Loft Concepts, San Antonio. SunRidge Management Group will manage the property.
