Keeley Kirkendall, EVP of the Affordable Housing Division of ARCS, saysthe loans ranged from $1 million to $10.3 million and were originated bythe ARCS San Francisco office through the Fannie Mae DUS program inpartnership with the investment banking firm, RBC Dain Rauscher. ARCS' production and underwriting staff worked with the housing authority to coordinate the tax-exempt variable bond financing. A bifurcated loan structure for two of the properties with long-term HAP contracts allowed the borrower to receive approximately $1 million more in loan proceeds.
The LTV for the portfolio was 76%. The overall DSC for the portfolio was 1.2, although the HAP contract properties were at lower levels.
The refinancing reduced the borrower's debt service by nearly 50% due to the low, all-in rate of 2.23%. Excess cash flow will now be available to reinvest in the properties for upgrades and general maintenance.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more information visit Asset & Logo Licensing.
