SAN DIEGO—Walker& Dunlop, Inc., Bethesda, Md., recently provided $32,842,600 in financing under the U.S. Department of Housing and Urban Development’s Section 223(f) program for a portfolio of four multifamily properties in San Diego: Bridgeport City Heights, Bridgeport Linda Vista, Bridgeport Normal Heights, and Bridgeport North Park.
The portfolio included 52 apartment buildings in scattered-site neighborhoods located in northern San Diego. The properties were originally financed by 13 HUD-insured loans in 1998 and were subject to rent-restrictions associated with tax-exempt bond financing. Walker & Dunlop’s approach facilitated the refinance and enabled them to navigate through the varying tax credit rent restrictions to maximize proceeds. The Walker & Dunlop team, led by Vice President, Carolyn McMullen (312-658-0470, email@example.com), ensured that the tax-exempt bonds were paid off in accordance with the regulations, resulting in just four HUD-insured loans, saving the borrower thousands of dollars in fees and providing substantial interest rate savings.
All four refinance loans were structured with 35-year terms and underwritten to between 66.7 and 80 percent loan-to-values with 1.18x to 1.44x debt-service coverage ratios.