David Stein, vice president of New York City-based Metropolitan Funding Corp., arranged the financing along with HUD's Phoenix office. Stein tells GlobeSt.com that the borrower could only refinance existing debt, complete necessary capital improvements and pay for transaction costs under the conditions of the HUD loan. Thus, borrower, ENCOR-Sun City AZ LLC was limited to a loan for about 65% of the value of the property, which Stein puts in excess of $5 million.
For the Carillions, the borrower received a locked interest rate of 7% on a 35-year self-liquidating loan. ENCOR has had an ownership interest in the 23-year-old property for more than 15 years, says Stein. For the last three years, ENCOR has held the majority ownership interest.
"The property is very well situated, competitively speaking, in the Sun City senior Housing market," Stein says. Monthly rents are $1,350 for a studio apartment, $1,800 for a one-bedroom unit and $2,300 for a two-bedroom design.
In keeping with such property types, the Carillons has a round-the-clock staff and provides three meals a day, transportation and recreation for its residents. The facility also has an ice cream parlor, library and wellness center.
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