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Case Study: The Reserve at Couret Farms 

November 2016
Lafayette, LA 


Vintage Realty Company, a major regional developer and property manager headquartered in Shreveport, LA, formed a joint venture with Southern Lifestyle Development, a Lafayette-based developer with experience in Traditional Neighborhood Development (TND) projects. The development team, passing on conventional financing options, turned to Sims Mortgage Funding to obtain HUD-insured construction and permanent financing for The Reserve at Couret Farms


SMF obtained waivers from HUD that allowed us to bypass the preliminary application stage, and to underwrite the loan at the higher loan-to-cost and lower debt service coverage ratios that would be going into effect well after the application was filed. These waivers shortened the financing schedule, helping to avoid an escalation of construction costs, and enabled the borrower to maximize loan proceeds. 


The $20,677,900 loan was insured under the Section 221(d)(4) program and was underwritten at 85% of replacement cost. The loan features a 40-year amortization commencing 4 months after construction and a fixed interest rate that was considerably below projections. The debt service coverage ratio is 1.31. Closing escrows were approximately $1.76 million. 


SMF successfully obtained construction and permanent financing for a start-up project at a competitive, fixed, long-term interest rate, and on better terms than were available through commercial financing options. HUD mortgage insurance is an excellent source of capital for the development of market-rate rental housing, and, under certain conditions, age-restricted senior housing. It is also a competitive source of capital to refinance or acquire existing projects, and to expand or renovate existing, HUD-insured properties with supplemental financing. 

“When you work with a mortgage banker for 15 years they become as much a part of your team as your architects, engineers and contractors. They have consistently delivered positive results and have closed deals that otherwise would have never happened. Their knowledge of each HUD program is unsurpassed and it is very obvious that every HUD office they have worked with has the utmost confidence and respect for their team. With the respect from the different offices, they are able to reach out to the higher levels of HUD to solve problems. We look forward to working with Sims for many years to come and we strongly recommend them to any company interested in completing a HUD loan.” 

– David Alexander, Managing Partner, Vintage Realty Company 

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For more detailed information on how the The Reserve at Couret Farms  was Financed Right® by HJ Sims and Sims Mortgage Funding, please contact:

Kerrie J. Tomasiewicz
(201) 307-9383

HJ Sims is a member of FINRA/SIPC ® and is not affiliated with the United Methodist Homes of NJ Sims Mortgage Funding is a wholly owned subsidiary of HJ Sims & Co Inc.