The permanent loan was made to borrower the Arc of North Carolina at a fixed-interest rate of 5.43%, a figure that is nearly half of the average 8.75% the umbrella organization had been saddled with under its original individual US Treasury loans for each property.
The primary reason behind ARC's decision to refinance, GMACCM vice president and Washington, DC branch manager Richard K. Price tells GlobeSt.com, was the desire to fund a $3.8 million renovation of the properties. "The debt-service savings will also be used to create sufficient ongoing operation and maintenance reserves, and to improve and expand program services to tenants," Price adds.
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