Dealmaker: Love Funding Secures $102M for Multifamily Properties

Love Funding, Washington, D.C., closed five loans totaling $97 million for five Midwestern multifamily communities.

Bruce Gerhart, Love Funding Midwest Regional Director, secured the loans using HUD multifamily loan insurance programs. The programs provide non-recourse long-term financing for constructing, substantially rehabilitating or refinancing affordable or market-rate apartment properties.

The subject properties included Manchester, a new market-rate community in Novi, Mich. that will add 172 units; Encore Townhomes, a new market-rate townhouse community under construction in Utica, Mich.; Danbury Park Manor, an existing, 151-unit Section 8 multifamily community in Superior Township, Mich. and two Illinois Section 8 multifamily communities restricted to senior residents.

In Broomfield, Colo., Love Funding Senior Vice President Jonathan Camps secured $5.24 million to refinance Town Centre Senior Apartments.

Town Centre Senior Apartments includes 88 affordable one-bedroom and two-bedroom units for people 55 and older. Built in 2001 using Low-Income Housing Tax Credits, the property sits between Boulder and Denver.

Camps secured the funds through HUD’s 223(f) loan insurance program. Part of the proceeds will fund necessary repairs and the property’s reserve account.

“One challenge that needed to be addressed during the refinancing process was the existence of a regulatory floodway on the property where improvements were in place, namely a carport structure and an asphalt parking area,” Camps said. He noted that generally improvements within a floodway would rule out the project for FHA-insured financing. But the firm won FHA approval to proceed because the existing debt on the property was a HUD risk-share loan and no new construction, rehabilitation or renovations beyond routine maintenance were being proposed.