This refinancing represents another significant step in ZFC's utilization of the HUD Section 202 refinancing program to aid Sponsors in providing capital to upgrade their projects and generate a developer’s fee as part of the transaction.
Chicago, IL (PRWEB) May 06, 2015
Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $7,710,800 refinancing of three Section 202 affordable housing properties, by Ziegler’s Financing Corporation (ZFC), the FHA-insured mortgage lending arm of Ziegler. The three projects, all located in the Kansas City area, are owned by Catholic Charities of Kansas City-St. Joseph (Catholic Charities) and are managed by Yarco Company, Inc. (Yarco).
The three projects consisted of: Cathedral Square Towers (156 units), Marlborough Manor (31 units), and Columbus Park Plaza (56 units). This transaction utilized HUD’s Section 202 refinancing program under Section 207/223(f). ZFC was able to secure a $4,495,000 mortgage loan for Cathedral Square, $1,447,700 mortgage loan for Marlborough Manor, and a $1,768,100 mortgage loan for Columbus Park Plaza.
ZFC’s expertise in utilizing HUD’s 202 refinancing policy created value for the borrower by: (1) refinancing $4,786,000 of Section 202 Direct Loans and secondary financing; (2) capitalizing planned repairs at the properties; (3) generating “cash-out” proceeds to complete additional repairs at Marlborough Manor and fund other expenses; (4) providing for a developer’s fee; and (5) lowering the annual debt service costs.
“We want our residents to feel at home in our communities,” said Deacon Dan Powers, CEO of Catholic Charities of Kansas City-St. Joseph. “This allows us to make improvements that make them more comfortable and encourage social interaction and activity.”
Catholic Charities prides itself in offering superior affordable housing that creates and preserves excellent residential communities promoting wellness and encouraging active and healthy lifestyle choices. This refinancing provided capital for improvements that can only be accomplished with these additional resources and provide a developer’s fee that will allow Catholic Charities to further its mission in the community.
"This refinancing represents another significant step in ZFC's utilization of the HUD Section 202 refinancing program to aid Sponsors in providing capital to upgrade their projects and generate a developer’s fee as part of the transaction." stated Bill Mulligan, President of ZFC. "We were very pleased to work with the Catholic Charities team and Yarco to complete this transaction."
Ziegler Financing Corporation’s dedicated team of FHA-insured financing professionals serves for-profit, not-for-profit, and community-based organizations to deliver high-leveraged, low-cost, fixed-rate debt through FHA-insured financing programs. Our clienteles’ financing needs are met by providing lower cost of capital to fund a range of development activities from deferred renovations to new constructions.
For more information about Ziegler and FHA specifically, please visit us at http://www.Ziegler.com/fha or contact Bill Mulligan (bmulligan(at)ziegler.com).
About Catholic Charities of Kansas City-St. Joseph
Founded in 1879, Catholic Charities of Kansas City-St. Joseph is a nationally accredited, non-profit agency dedicated to human services across Central and Western Missouri. Inspired by the Gospel mandate, Catholic Charities transforms lives and communities through hope-filled care, services and advocacy.
The impact of Catholic Charities of Kansas City-St. Joseph is felt every day in the communities it serves. Annually, the agency directly serves more than 72,000 people of all faiths, and helps thousands more through a network of neighborhood emergency assistance sites.
For more information about Catholic Charities of Kansas City-St. Joseph, visit http://www.catholiccharities-kcsj.org.
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The Ziegler Companies, Inc., together with its affiliates (Ziegler), is a privately held, specialty investment bank with unique expertise in complex credit structures and advisory services. Nationally, Ziegler is ranked as one of the leading investment banking firms in its specialty sectors of healthcare, senior living, religion, and education, as well as general municipal and structured finance. Headquartered in Chicago, IL with regional and branch offices throughout the U.S., Ziegler provides its clients with capital raising, corporate finance, FHA/HUD, strategic advisory services and research. Ziegler serves institutional and individual investors through its wealth management and capital markets distribution channels.
Certain comments in this news release represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. This client’s experience may not be representative of the experience of other clients, nor is it indicative of future performance or success. The forward-looking statements are subject to a number of risks and uncertainties, in particular, the overall financial health of the securities industry, the strength of the healthcare sector of the U.S. economy and the municipal securities marketplace, the ability of the Company to underwrite and distribute securities, the market value of mutual fund portfolios and separate account portfolios advised by the Company, the volume of sales by its retail brokers, the outcome of pending litigation, and the ability to attract and retain qualified employees.
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