|Dealmaker of the Day|
Johnson Capital’s Denver office arranged a $15.3 million refinance loan secured by Desert Sky Apartments via the FHA Section 223(a)(7) program.
Scott Graber, senior vice president with Johnson Capital, made the arrangements for the 170-unit community in Henderson, Nev., on behalf of a family business that owns several properties in the area. The business purchased the property on South Las Vegas Boulevard in 2008.
Huntoon Hastings, Norwalk, Conn., a subsidiary of Johnson Capital, funded the non-recourse FHA-insured loan with a 32.3-year term. The borrower used the funds to refinance an existing FHA insured 223(f) loan. The fully amortizing debt carries a fixed interest rate for the entire term.
"This new debt retired an existing loan with a higher interest rate and large prepayment to reduce debt service and improve project cash flows," Grabar said. " FHA turned a commitment around in less than 30 days, allowing the borrowers to take advantage of a phenomenally low interest environment and reduce the interest note rate by 185 basis points."