Ziegler Closes $6.7 Million Refinancing of Two Properties Utilizing HUD’s 202 Refinancing Program
(PRWEB) October 09, 2013 -- Ziegler Financing Corporation (ZFC), the FHA-insured mortgage lending arm of Ziegler, is pleased to announce the successful closing of the $6,728,100 refinancing of two Section 202 affordable housing properties, Lincoln Villas North and Trinity Terrace, owned and managed by Lincoln Lutheran of Racine (LLOR).
Lincoln Villas North, a 74-unit affordable housing apartment complex, and Trinity Terrace, a 39-unit affordable housing apartment complex, are located in Racine, Wisconsin. ZFC’s extensive knowledge and experience in utilizing HUD’s 202 refinancing policy created value for the borrower by (i) refinancing Section 202 Direct Loans with a collective balance of $3,164,000 and refinancing existing deferred management fees and other unfunded operating expenses; (ii) capitalizing a planned repair program at Lincoln Villas North; (iii) generating significant “cash-out” proceeds to complete repairs at Trinity Terrace and fund other expenses; (iv) providing for a developer’s fee; and (v) lowering the annual debt service costs.
“This refinancing provides LLOR with additional capital to not only make improvements and repairs at both communities, but also provides for the repayment of deferred management fees, while generating a substantial developer’s fee that will be used to continue LLOR’s mission of serving people through low-income housing and other means in Racine for many years to come,” said Bill Mulligan, President of ZFC. “HUD’s 202 refinancing policy provides an opportunity for owners with Section 202 direct loans to realize many benefits for both the project and sponsor, while serving as a source of new, flexible capital in the current interest rate environment.”
ZFC has a dedicated team of FHA-insured financing professionals serving the not-for-profit, for-profit, and community-based organizations to deliver high-leveraged, low-cost, fixed-rate debt through FHA-insured financing programs.
ZFC tailors financial products for not-for-profit, for-profit and government clients across the country. ZFC offers a broad product mix, including mortgage loans insured by the Federal Housing Administration for the acquisition, refinancing and mortgage add-ons of nursing homes, assisted living facilities, hospitals, and apartments. FHA financing programs for healthcare and multifamily housing are attractive financing alternatives for corporate sponsors, as well as large and small not-for-profit operators.
For more information about ZFC, please visit us at http://www.Ziegler.com/fha or contact Bill Mulligan (bmulligan(at)ziegler(dot)com).
Christine McCarty, Ziegler, http://www.ziegler.com, 312 596 1617, [email protected]
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