Ziegler Closes $4.9 Million FHA Refinancing of an Affordable Housing Project in Virginia
CHICAGO–Ziegler, a specialty investment bank, has announced the successful closing of the $4,876,000 refinancing of Heritage Haven by Ziegler Financing Corporation (ZFC), the FHA-insured mortgage lending arm of Ziegler.
Heritage Haven is a 150-unit affordable housing community sponsored by Virginia Mennonite Retirement Community (VMRC). VMRC began operations in 1954 and is located in Harrisonburg, VA, situated in the Shenandoah Valley surrounded by the Blue Ridge and Massanutten mountains.
Over the years, the VMRC campus has evolved and expanded and currently consists of 150 affordable housing units, 263 independent living units, 86 assisted living units, and 120 nursing care beds. Recognizing an opportunity to lock-in historically low, long-term fixed interest rates in todays’ market, VMRC decided to explore the refinancing alternatives available to Heritage Haven.
ZFC’s expertise in utilizing the U.S. Department of Housing and Urban Development’s multifamily refinancing program for affordable housing projects created value for the borrower by: (1) reducing the annual debt service costs; (2) lowering the interest rate from 6.20% to less than 3.45%; and (3) capitalizing over $625,000 worth of planned repairs to upgrade and modernize the property.
“Ziegler Financing Corporation was pleased to be able to execute this transaction that created significant value for the client and the community they serve. The residents will enjoy a better quality of life within a newly renovated building while the client’s overall debt service will be reduced,” said Bill Mulligan, president of Ziegler Financing Corporation. “It has been a pleasure working with Heritage Haven and the VMRC organization to complete this transaction.”
Ziegler Financing Corporation’s team of FHA-insured financing professionals serves for-profit, not-for-profit and community-based organizations to deliver high-leveraged, low-cost, fixed-rate debt through FHA-insured financing programs.