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Hunt Real Estate Capital announced today that it has 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, California.
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,” noted Paul Weissman, Senior Managing Director and Head of Affordable Housing Production at Hunt Real Estate Capital.
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% of the units.
The borrower is Standard Communities, the affordable and workforce housing division of Standard Companies. Standard Companies’ portfolio spans 15 states and consists of more than 12,000 apartment units, of which more than 8,800 are affordable. This refinancing will allow for incremental capital investment at Rio Vista Apartments, which will benefit residents as well as further Standard’s efforts to produce and preserve housing that is both affordable and environmentally sustainable.
“This transaction closed on schedule while California was in the middle of a statewide stay-at-home order,” Weissman added. “It is testament to what can be accomplished when a skilled closing department collaborates with a professional borrower group and our dedicated industry partners at HUD.”
The property is currently 99% occupied. Common area amenities consist of an on-site leasing office, on-site management, laundry facility, playground, basketball court, swimming pool, and community whirlpool. Resident parking consists of 262 on-site parking spaces.
San Ysidro is located in the San Diego MSA, immediately north of the U.S.-Mexico border. It neighbors Otay Mesa West to the north, Otay Mesa to the east, and Nestor and the Tijuana River Valley to the west.