Dealmaker: Love Funding Secures $86M in Multifamily Refinances

Love Funding, Washington, D.C., closed $85.5 million in loans to refinance apartment communities in New Jersey and North Carolina. 

The firm arranged $75.3 million to refinance Parkview Towers and Clock Tower Apartments, two affordable apartment communities under the same ownership team in New Jersey. Parkview Towers, a 688-unit property in West New York, houses 684 Section 8 apartments and four market-rate units in two 24-story buildings. Clock Tower Apartments in Hoboken is a six-story asset last renovated in 1976. 

Love Funding Senior Director Laura Saull-Smith secured funding for both properties through the HUD’s 223(a)(7) loan insurance program, which allows up to 12 years to be added to an existing HUD mortgage’s remaining term. She said the 223(a)(7) program provided non-recourse financing that lowered the debt service, providing more than $500,000 in annual savings. 

“A significant factor in generating the cost savings was how quickly the loans moved through the New York hub office of HUD; both transactions were processed in about 30 days,” Saull-Smith said. 

In North Carolina, Love Funding secured $10.2 million through HUD’s 223(f) loan insurance program to refinance two apartment communities, the Bluffs at Northwoods and Cannon Place Apartments. 

Love Director Kenneth Charbauski said the new loans provided a “significant reduction in interest rate for both properties” and offered a 35-year fixed term with 35-year amortization.

The Bluffs at Northwoods is a 176-unit market-rate community in Gastonia, N.C. Cannon Place Apartments in Graham, N.C. includes 74 affordable units in nine two-story apartment buildings.