Wednesday, September 16, 2015

Cathedral Development Group Closes on Refinancing of Seniors Property

 The $44 million refinancing of Westward Ho Apartments, a historic building that once was a premier hotel for the city, includes a Federal Housing Administration (FHA) Sec. 221(d)(4) substantial rehabilitation loan, 9% low-income housing tax credits (LIHTCs), and federal historic tax credits.

Multiple federal, state, and local entities were involved in the loan restructuring, including three Department of Housing and Urban Development offices and the city of Phoenix. The FHA loan was provided through Berkadia Commercial Mortgage, and the LIHTC equity was syndicated through The Richman Group and provided by Bank of the West. Arizona Department of Housing allocated the tax credits.

“What’s unique about this refinancing is that it is for a nationally registered historic structure located in the heart of downtown Phoenix within a quarter of a mile from the nearest light-rail station and close to amenities,” said Robert Gaudreau Jr., president of CDG, in a statement. “Additionally, the facility will offer residents health and social services through a unique partnership with Arizona State University who will occupy the first floor of the Tower building on the property.”

The building opened as a hotel in 1928 and underwent an expansion in 1948 to grow to 600 rooms. The hotel was converted to affordable housing in 1979.

The approximately $14 million rehabilitation will include repairs and upgrades to windows, HVAC equipment, and central plant mechanical and plumbing systems, as well as new cabinets, floors, and fixtures in units.

“Select in-unit improvements will enhance the residents’ living experience and improve the desirability and marketability of the property,” said Gaudreau.

read more: http://www.housingfinance.com/finance/cathedral-development-group-closes-on-refinancing-of-seniors-property_o

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