LONGMONT, CO—Capital One Multifamily Finance has provided a $11.1 million 223(f) HUD loan to refinance Grandview Meadows Phase II, a 120-unit garden-style apartment complex here. The transaction was originated by Chuck Christensen, senior vice president of originations headquartered in Capital One Multifamily's Newport Beach, California office.

M. Timm Development, Inc., the sponsor, is a fully integrated real estate development company founded in 1984. This was Timm's second transaction with Capital One Multifamily in less than a year.

Grandview Meadows II was built in 2002 and consists of eight, two-story residential buildings. It is the second phase of a multi-phase apartment project currently containing 434 units that Timm began developing in 2000. Grandview Meadows II amenities include a clubhouse, fitness center, two swimming pools, hot tub, picnic area and playground. The complex's superior amenities, excellent condition, and location 10 miles from Boulder and 30 miles from Denver have driven extremely high average occupancy over the past three years.

“Although phased assets can be difficult to finance,” says Christensen, “we were convinced that Grandview Meadows II was an excellent candidate for 223(f) financing. As HUD was quick to see, it's an extremely attractive property in an ideal location, developed and managed by an experienced owner and operator.”

Timm was pleased with the results. “Our goal was straightforward: obtain long-term financing at the lowest possible rate,” says Matt Easter, vice president at Timm. Although new to HUD financing, Timm was willing to consider it based on their previous experience with Capital One Multifamily. “We're really happy we pursued it,” Easter says. “Capital One Multifamily guided us smoothly through the process and the results were exactly what we were hoping for.”

The fixed-rate loan has a 35-year term.