Dealmaker: Love Funding Secures $33M
Love Funding, Washington, D.C., closed $33.07 million in FHA loans for assets in Missouri, Illinois and Kentucky.
Love Funding Senior Director Robyn Cunningham and Director Adrian Hartman secured $15.7 million through HUD’s 223(f) loan insurance program to refinance Legends Terrace Apartments, a market-rate apartment property in Eureka, Mo.
Cunningham said the HUD program provided the borrower with a low-rate non-recourse mortgage that also funded a replacement reserve.
Current owner-manager Legends Apartments LLC purchased the 176-unit property in 2003.
In Chicago, the firm arranged $12.3 million to construct a proposed supportive living facility, Montclare Senior Residences of Lawndale. Love Funding Midwest Regional Director Bruce Gerhart secured the financing through HUD’s 232 loan insurance program, which gave the development team Led by MR Properties LLC Managing Member and Founder Philip Mappa non-recourse financing through construction and a subsequent 40-year term.
Gerhart said additional funding came from nine percent Low-Income Housing Tax Credits through the Illinois Housing Development Authority, a Chicago Department of Housing loan, a tax increment financing grant and an Illinois Department of Commerce and Economic Opportunity grant. Nonprofit real estate investment firm Cinnaire will purchase the housing tax credits.
Love Funding Senior Director Tammy Tate secured $5.07 million through HUD’s 223(a)(7) loan insurance program for Clays Pointe Duplexes, a market-rate community in Elizabethtown, Ky.
Tate helped borrower DuPlessis Clays Pointe Property LLC refinance the property in 2011 to help the borrower acquire parts of the property that it did not already own. The current loan locked in a lower interest rate for 35 years and will generate enough debt-service savings to ensure the project’s viability while providing additional funds for ongoing capital needs, she said.
Constructed in phases beginning in 2006, Clays Pointe Duplexes includes 62 two- and three-bedroom duplexes.
