The 10-year loan is being amortized over 30 years and will have an expected interest rate of 6.25% when it closes after the new construction is completed in 18 months, Collateral vice president Jane Z. Harrison tells GlobeSt.com.
"This deal had many nuances to overcome," Harrison tells GlobeSt.com. "For example, there was a transfer of the general partner and the tax credit equity had already been paid in several years ago."
Despite the challenges, the deal was done in less than 60 days, a required deadline "because of a shortened timeline, compared to most Fannie Mae forward commitments," Harrison says. Wachovia Bank's $4.14 million construction financing will be repaid when the Fannie Mae loan closes in June or July of 2004.
The nonprofit Cooperative Resource Center was the managing member in the transaction. CRC is headed by executive director William Craig Taylor who co-founded Habit for Humanity with former President Jimmy Carter. CRC acquired Magnolia Cove in 1996.
The property is at 4001 Lakemont Drive in South Fulton County. "It's in a very tight housing market," Harrison says. Current occupancy is 87%. Projected monthly rents after the rehabilitation will range from $350 for efficiencies to $540 for one-bedroom and two-bedroom units.
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