Business as Usual  

What in the world is going on? With all of the talk about sequestration, the debt ceiling, GSE reform and general market turmoil, you would think that any company doing business with the federal government is in dire straits. Certainly, a lot of what is happening on Capitol Hill has a ripple effect on our FHA business. But let's be clear about something: Ripples aren't waves.

 

While these changes will affect a few of our friends at HUD, it will not have any impact on our ability to do business with HUD. Congress has passed a continuing resolution to keep the government open for business. In addition, HUD has been allocated the full commitment authority it was granted for fiscal year 2013. This means business as usual for the foreseeable future.

 

With GSE reform focused on the single family side, all of this means we can expect FHA to be the same reliable and attractive financing source it has been for multifamily properties, healthcare facilities and hospitals for almost 80 years.

 

Though we shouldn't expect to see forever the record-low rates that were once deemed unimaginable, the fact is rates are still extremely attractive - around 3% for 35- and 40-year fully amortizing debt. Call your Love Funding contact and find out how we can solve your multifamily, healthcare or hospital finance needs.

Mark Dellonte

President & CEO

Construction Financing for Unique Town Center Concept in Texas

Love Funding closed a $24.9 million loan for the construction and permanent financing of a 211-unit multifamily community in a unique town center concept being developed in McKinney, Texas.
 
St. Paul Square, a Class A multifamily project made possible by FHA financing support, will be part of Adriatica Village, a 45-acre town center development being modeled after Supetar, a fishing village located on Croatia's coast. Led by David Brooks and George Fuller, Adriatica will replicate many of Supetar's distinguishing features, including its landmark bell tower, old European architecture, cobblestone streets, hand-carved dove fountain and secluded island chapel.

 

Love Funding secured the loan through the U.S. Department of Housing and Urban Development's Section 221(d)(4) loan insurance program for new construction projects. Prior to commencing the project, members of the development team visited Supetar in order to meet with Croatian officials and learn how to replicate the stone construction methods used when the village was originally settled in 1577. Adriatica's modern take will also feature single-family homes and condominiums, retail stores, restaurants, medical offices and a weekly farmer's market situated under the bell tower. The village is being designed so that residents can leave their cars at home on evenings and weekends while they enjoy a European-style shopping or dining experience.
 
"We have to thank Love Funding and HUD for all of their efforts in getting our financing in place," Mr. Fuller said. "This wasn't a standard 221(d)(4) loan and we are very grateful to them for their tireless work on our behalf. Our cash flow will be significantly better than it would have been had we opted to go with conventional financing, and Love Funding was able to rate lock for us at a time of historically low rates."
223(a)(7) Loan Program
$4.26 Million Market-Rate Apartments
Columbia, Missouri
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In This Issue
Construction Financing in Texas
Recent Experience
Upcoming Events
Upcoming Events

  AFT Live
Las Vegas, NV
April 8-9

NMHC Apartment Strategies 
Finance Conference
Dallas, TX
April 23-25

Texas Apartment Association 
Lone Star Expo
Houston, TX
April 25

Western Mortgagee Advisory
Council Annual Meeting
April 29-May 1
Las Vegas, NV

Ohio Healthcare Association 
Spring Conference
Cleveland, OH
April 29-May 1

May 1-3
Sarasota, FL

Southwest Mortgagee Advisory 
Council Annual Conference
May 16-17
Grapevine, TX

 

Southeast Mortgagee Advisory 
Council Annual Conference
May 29-31
Hilton Head, SC

June 4-5
Washington, DC

Midwest Lenders Association
Annual Meeting

June 17-19
Chicago, IL

National Apartment Association
Education Conference
June 20-22 
San Diego, CA

Recent Experience
Here are just a few loans we've recently closed on behalf of our valued clients. Check out the full list online.

Churchill Downs
Churchill Downs Apartments

223(f) Loan Program
$15.8 million refinancing for Churchill Downs Apartments, market-rate apartments in Pullman, Washington
Davis Park - Stewart Avenue
223(f) Loan Program
$5.16 million for two LIHTC
properties in Boise, Idaho
232 Loan Program
$10M construction loan for an assisted living & memory care facility located
in Manvel, Texas
 Jonathan S. Camps
Senior Vice President & Managing Director of Production
PHONE 202.887.1825   EMAIL jcamps@lovefunding.com