After a recent string of closing refinancing loans for healthcare properties, affordable seniors housing, market-rate housing and a safety-net hospital, Sims Mortgage Funding successfully closed in February a $9,247,200 HUD-insured construction loan for The Monroe, a 70-unit, market-rate multifamily project in Lafayette, LA.
The Monroe is sponsored by the Lafayette Public Trust Financing Authority, a governmental entity that supports the City of Lafayette through a range of finance-related programs and community involvement efforts. The LPTFA selected Vintage Realty Company as the Project’s Developer and Managing Agent once construction is completed. Vintage is no stranger to Louisiana – they have developed approximately 3,600 units of market rate housing state-wide. And we are no stranger to Vintage – Sims Mortgage Funding has completed 27 HUD-insured loan transactions for them over the past 20 years!
The Monroe will be part of a downtown revitalization effort and will provide new housing options for a growing workforce of young professionals. It will be a four-story elevator building and feature the following amenities: an enclosed courtyard with lounge area; swimming pool; secured access; exercise room; BBQ area; a game room; and a dog wash area.
The $9,247,200 loan was insured under the Section 221(d)(4) program and was underwritten to a 76% loan to replacement cost ratio and a 1.176 debt service coverage. It will have a 40-year amortization that commences approximately 17 months after the completion of construction. The Monroe financing was completed in a very challenging environment of increasing interest rates and inflationary construction costs, but Sims Mortgage Funding was able to keep all parties focused, on track and ultimately led the team to the closing table.