Lake Charles, LA
In 2014 we originated an $16,674,200 FHA-insured Section 223(a)(7) loan that refinanced a HUD-insured loan for Country Club Pointe, a 256-unit market-rate apartment project. 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 2014 financing. The entire transaction took approximately 130 days to complete.
The IRR reduced the interest rate by 37% and will generate total debt service savings of approximately $5.5 million through the remaining term of the loan.
The IRR, completed seven years after our refinancing, 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.