Lancaster House South is a 150-unit elderly apartment building located in Lancaster, Pennsylvania. This 11-story building was originally constructed in 1979 with a HUD Section 202 direct loan. AGM structured the refinance and recapitalization of the project using a combination of two HUD-insured loans. A new $4,290,900 first mortgage was made using Section 223(f) in accordance with all of HUD’s Section 202 refinance requirements. A Section 241 Supplemental loan of $4,445,400 was processed and closed simultaneously. This second mortgage funded the majority of the renovations. Debt service savings from the prior Section 202 loan plus a Section 8 rent increase to market rent will provide the revenue needed to service this loan. Both loans were funded for 35 years.
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When the ball stops rolling…
The way to catch a knuckleball is to wait until it stops rolling and then pick it up. – Bob Uecker In baseball, the knuckleball
