Hunt Real Estate Capital provided a $20.8 million refinancing through the FHA 223(a)(7) loan program for Rio Vista Apartments, an affordable multifamily property located in San Ysidro, Calif., according to a press release.
The new loan features a 35-year term and refinances an existing FHA 223(f) loan, providing significant annual debt service savings with a lower interest rate and reduced mortgage insurance premium.
“The new loan facility will help improve cash flow and overall financial performance of the community,” Hunt Real Capital Senior Managing Director and Head of Affordable Housing Production Paul Weissman said in the release.
Rio Vista Apartments is a 161-unit multifamily property that was built in 1985 and purchased by the borrower in 2014. The property consists of 12 two-story buildings, which contain a mix of two- and three-bedroom floor plans. Rio Vista qualifies as broadly affordable, and is subject to a LIHTC agreement that covers 100 percent of the units, the company said.
The borrower is Standard Communities, the affordable and workforce housing division of Standard Companies.
“This transaction closed on schedule while California was in the middle of a statewide stay-at-home order,” Weissman said.
Hunt Real Estate Capital is a division of ORIX Real Estate Capital, is a leader in financing multifamily housing and commercial real estate.