(PRWEB) June 18, 2013
Ziegler Financing Corporation (ZFC), the FHA-insured mortgage lending arm of Ziegler, is pleased to announce the successful closing of the $5,680,000 refinancing of a Section 202 affordable housing property, Presidio Gate Apartments, owned and managed by Lytton Gardens Senior Communities (LGSC), an affiliate of Episcopal Senior Communities (ESC).
Presidio Gate Apartments is a 55-unit affordable housing apartment complex located in San Francisco, California. This transaction utilized HUD’s new 202 refinancing policy announced last year and creates value for the borrower by (i) generating approximately $2,150,000 in "cash-out" proceeds, (ii) generating a 15% developer’s fee, and (iii) lowering debt service cost.
While there are restrictions on the use of the “cash-out” proceeds, there is substantial flexibility in redeploying this capital in senior affordable and/or related health care capital projects. The use of the developer fee is unrestricted.
“This financing is ‘Exhibit A’ for how HUD’s new 202 refinancing policy can benefit not-for-profits and low-income seniors; providing a highly regarded and effective not-for-profit a new, flexible source of capital to meet their broader mission objectives,” said Frank Rockwood, Senior Vice President in ZFC. “ZFC and ESC worked together to navigate the multifaceted 202 policy and were able to be one of the first organizations to successfully utilize the benefits of the relatively recent refinement to HUD’s 202 refinancing policy.”
ESC, located in Walnut Creek, California owns and operates five market rate continuing care retirement communities. LGSC, an ESC affiliate, has four low income affordable senior housing sites. All these communities are within northern California located from the Monterey peninsula to Sonoma County. This refinancing was another example of successful teamwork between Ziegler and ESC. Most recently in December 2012, Ziegler Investment Banking closed a $127,480,000 fixed-rate, Series 2012 Bond issue on behalf of ESC.
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) - For-profit and not-for-profit portfolio transactions; Frank Rockwood (frockwood(at)ziegler(dot)com) - Not-for-profit transactions (affordable); or Jeremy Frankel (jfrankel(at)ziegler(dot)com) - For-profit (senior living and multi-family).