Apartment Financing America was tasked with developing a multifamily financing strategy for the Vickery Place Apartments in the historic East Dallas neighborhood of Vickery Place. We were additionally charged with placing an apartment loan to finance the acquisition of the property. There were obstacles that made this Dallas apartment financing far from automatic. Because the asset is an aging, mid-size apartment building, a full complement of multifamily financing options wasn’t available to fund the project. Drawing on decades of multifamily lending expertise and our experience placing GSE insured apartment loans, we identified the optimal financing solution for the project.
We developed a financing strategy that overcame the funding hurdles posed by the age and size of the property, and delivered optimal financing terms for this Texas multifamily loan. The strategy we developed made use of HUD insured financing with an FHA apartment loan. By employing an FHA apartment loan, we were able to provide the purchaser with a very low interest rate, because repayment of the principal and interest was guaranteed by the US Department of Housing and Urban Development or HUD. We successfully placed this long-term, non-recourse $2,100,000 FHA 223f apartment loan with a 35 year self-amortizing term and a low fixed interest rate.
Case Study Fact Sheet
|Project||FHA Apartment Loan Texas|
|Property||Vickery Place Apartments, Dallas Texas|
|Location||Vickery Place, Dallas Texas|
|Property Type||Multifamily Apartment Building|
|Loan Type||Commercial Apartment Loan|
|Loan Program||FHA 223f Multifamily Loan Program|
|Amortization||35 years, self amortizing|
FHA 223f Multifamily Loan
- Apartment loan minimum $1 million
- No maximum loan amount
- 83.3% LTV for market rate apartments
- 90% LTV for project based rental assistance
- Self amortizing 35 year term
- Low, fixed apartment mortgage rate
- Minimum debt coverage ratio 1.17
- FHA 223f is non-recourse as to the borrower
- FHA 223f Apartment Loan Details
FHA Apartment Loan Vickery Place, Dallas
We placed a 35 year, fixed-rate, FHA apartment loan on the property which is located in Vickery Place, an historic neighborhood in East Dallas. The neighborhood is bounded on the north by Goodwin Avenue, on the west by North Central Expressway and Henderson Avenue, on the south by Belmont Avenue, and on the east by Greenville Avenue. Although Vickery Place is considered by some to be part of the M Streets area, technically it is not, as it is south of the Greenland Hills neighborhood. Vickery Place has seen much improvement and property value growth over the past several years due to its close proximity to Downtown Dallas (2–3 miles from Downtown) and Uptown, as well as its relative location bordering on the vibrant Lower Greenville Avenue and Knox-Henderson entertainment and shopping districts.
Vickery Place is one of the oldest neighborhoods in Dallas, filled with Prairie, Craftsman and Tudor style bungalows, and old growth pecan trees. As such, there are relatively few multifamily projects nearby, making the FHA 223f apartment loan originated by Apartment Financing America rather rare for the area.
The Dallas City Council unanimously approved the Vickery Place Conservation District in 2006, as a result of a concerted community effort to halt the destruction of historic homes and the construction of larger homes which many activists asserted were inappropriate for the neighborhood.
Vickery Place is within the Dallas Independent School District. The neighborhood is zoned to Robert E. Lee Elementary School, J. L. Long Middle School, and Woodrow Wilson High School. From Wikipedia, the free encyclopedia.