PHILADELPHIA and RICHMOND, Va. – September 18, 2017 – Berkadia today announced that their HUD team recently secured financing totaling over $96.2 million for three properties through the HUD 223(f) and 221(d)(4) programs.
Two of the loans were negotiated by Senior Directors Joseph DeGiorgi and Matt Cullison of Berkadia’s Philadelphia office on behalf of the borrower, PMC Property Group, through the HUD 223(f) loan program. The loans totaled $67.1 million and represent two of the largest HUD 223(f) loans originated in Center City Philadelphia in the past five years.
HUD processed each application for Berkadia in less than 45 days, demonstrating their ability to move quickly, which has been a recent focal point of the HUD Transformation Program. Both loans featured a 35-year loan term, a 3.15 percent interest rate and an 80 percent loan-to-value ratio.
“This was a perfect marriage of long-term debt with a long-term owner like PMC Property Group,” said Cullison. “With these loans, PMC has secured a fantastic low interest rate for the next 35 years, while still having the option of exiting the loan after 10 years with no penalty. We were very happy to deliver these HUD executions for this valued customer of our firm.”
“The timing and execution of these two transactions shows that the HUD Transformation Program is working. HUD financing should be a strong option for owners and developers in the Philadelphia region,” added DeGiorgi.
A third property, Moore’s Lake Apartments located at 10200 and 10220 Jefferson Davis highway in Richmond, Virginia, was financed through the 221(d)(4) program. The $29.1 million construction loan was secured by Senior Managing Director David Blake and Senior Director Steve Murden of Berkadia’s Richmond office and features a 3.85 percent interest rate and an 85 percent loan-to-cost ratio. The 40-year loan was secured for borrower Moore’s Lake LLC, whose team was comprised of Phil Roper and George Emerson.
“Moore’s Lake presented an opportunity to help our longstanding clients, both residents of the area themselves, in their effort to assist Chesterfield County in the revitalization of the Jefferson Davis Highway corridor,” said Blake. “Moore’s Lake is fondly remembered by local residents as ‘the old swimming hole and dance hall,’ built in 1950. The new plans call for an urban-style development in a suburban setting and offer housing options that were not available in this portion of Chesterfield County until now.”