Grandbridge Real Estate Capital recently closed a $21,500,000 loan secured by La Borgata Apartments, a 142-unit multifamily community in Surprise, Arizona.
Originated by Grandbridge Managing Director Artin Anvar, the permanent, fixed rate loan was funded through HUD’s FHA 223(f) loan program.
Structured with a 35-year term and 35-year amortization, the transaction closed with a fixed interest rate of 2.21 percent. FHA section 223(f) allows for up to 80 percent loan-to-value for cash out transactions. The program allows for long-term mortgages (up to 35 years) that can be financed at low rates with Government National Mortgage Association (GNMA) Mortgage-Backed Securities. This eligibility for purchase in the secondary mortgage market improves the availability of loan funds and permits more favorable interest rates.
In addition to long term, low interest rate funding, the borrower was able to refinance with significant cash out proceeds and secure FHA’s Green Mortgage Insurance Premium (MIP) at a reduced rate of 25 basis points.
“A well-maintained multifamily property in Phoenix’s strong sub-market, coupled with an experienced borrower and strong property management team made this deal work. Timing was crucial to the success of this transaction. We were able to lock the deal and secure the Green MIP before changes to FHA’s Green MIP went into effect. Plus, were able to provide the borrower with a large cash out,” said Anvar.
“This is the third time we have refinanced La Borgata with Artin, and want to relay our sincere appreciation to him and the entire Grandbridge team for navigating the HUD process in a continually changing economic and regulatory environment. We look forward to working with the Grandbridge team again,” said Devan Wastchak of VIVO Development.
La Borgata’s amenities include a gated entry, clubhouse, coffee lounge, movie theatre, 24-hour fitness center with sauna, business center, lagoon-style pool and spa, and lush landscaping throughout the property.