SIMS MORTGAGE FUNDING USES NOTE MODIFICATION TO REFINANCE A MARKET RATE MULTIFAMILY COMMUNITY IN LOUISIANA
In 2015 we originated an $16,674,200 FHA-insured Section 221(d)(4) loan that financed construction of Belle Savanne a 208-unit market-rate apartment project in the Lake Charles metropolitan area. The Project was developed and is managed by Vintage Realty Company, a privately owned, full-service real estate firm specializing in the brokerage, leasing, property asset management, development, and construction
Interest rates had declined since the original financing, providing Vintage with the opportunity to generate debt service savings. We advised them of this positive development in the market and suggested a refinancing structured under HUD’s Mortgage Note Modification/Interest Rate Reduction (IRR) protocol.
Acting as Financial Advisor, we developed the initial financial modeling of the transaction and coordinated the development of the formal IRR proposal with the existing loan servicer, whom we brought into the 2015 financing. The entire transaction took approximately 100 days to complete.
The IRR reduced the interest rate by 22% and will generate total debt service savings of approximately $3.1 million through the remaining term of the loan.
The IRR, completed six years after our initial financing, is another example of SMF maintaining long-term relationships with our clients and delivering to them ongoing value. Sims has closed 28 HUD-insured loans for Vintage since 2002.