Love Funding, Washington, D.C., secured a $20 million construction loan for Aventine at Wilderness Hills, an in-development apartment community in Lincoln, Neb.
Robyn Cunningham, senior director with the firm’s St. Louis office, secured the financing with Love Funding Director Adrian Hartman through HUD’s Section 221(d)(4) loan insurance program for multifamily construction projects. Section 221(d)(4) insures lenders against loss on mortgage defaults. It allows for mortgages up to 40 years that can be financed with Ginnie Mae mortgage-backed securities.
“Using the [Section 221(d)(4)] program enabled the borrowers to lock in a fixed, low-rate, non-recourse loan for a 40-year term once construction is completed,” Cunningham said.
When completed, Aventine at Wilderness Hills will offer 220 market-rate garden-style apartment units in 12 two- and three-story buildings. “The site is located in an area that includes a mixture of commercial, retail and housing where the city of Lincoln is already planning to add several large commercial and residential projects in the near future,” Cunningham said.
A partnership between the Sterling Group Inc., Mishawaka, Ind. and Braxton Development, Bozeman, Mont. acts as the loan’s sponsor. Sterling Management will manage the property upon completion.
Love Funding also closed refinancings totaling $19.3 million for two Texas skilled nursing facilities. Leonard Lucas, senior director in the firm’s Boston office, secured the loans through the Section 232/223(f) LEAN loan program for long-term care facilities.
The properties include Park Valley Inn, a 160-bed skilled nursing facility in Round Rock and Sundance Inn Health Center, a 128-bed skilled nursing facility in New Braunfels. Lucas said the loans have a “low fixed rate for a 35-year term, generating significant debt service savings for the borrower.”
Source: MBA NewsLink