Dealmaker: Love Funding Secures $31M for Multifamily

Love Funding, Washington, D.C., secured $30.8 million for multifamily assets in South Dakota and California.

In Rapid City, S.D., Love Funding Senior Director Peter Wessel secured a $24.2 million FHA-insured loan to provide construction and permanent financing for Moon Meadows Apartments. When completed, the community will offer 160 one-, two- and three-bedroom units in three-story garden-style buildings.

Wessel used HUD’s Section 221(d)(4) loan insurance program, which provides low-rate non-recourse financing for up to 40 years for multifamily properties.

Moon Meadows Apartments is part of the larger Moon Meadows Park development, which will include an office building, a hotel, retail space and a new medical and office park. The property is classified as green under the EnergyStar for Homes standard.

In California, Love Funding Senior Vice President of Business Development Jonathan Camps closed three loans totaling $9.6 million to refinance a group of affordable rental communities backed by Low-Income Housing Tax Credits.

The three refinanced properties included Comfrey Senior Apartments and Hudson Bay Apartments in Galt, Calif. and Shadowbrook Apartments in Redding, Calif. Comfrey Senior Apartments serves mixed-income seniors 55 and older and Hudson Bay and Shadowbrook offer affordable units. The Wentwood Cos., Austin, Texas, owns all three communities.

The properties total 216 units, all built between 2001 and 2002.

Camps used HUD’s 223(f) loan insurance program, which aims to preserve affordable multifamily housing. The program provided the development team with non-recourse financing to refinance existing loans, fund property improvements and provide permanent financing.