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Home > ... Federal Financing Updates > 06/26/06 202 Refinance Iowa
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High-rise finances insulation, safety, aesthetics improvements for low-income seniors
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KANSAS CITY, Kan. (June 26, 2006) – Major renovations at a 20-story Des Moines, Iowa, building will keep an affordable senior living community safe and efficient for decades. The renovations are being funded by an $8.6 million refinance provided by Lancaster Pollard.
Ligutti Tower, a First Baptist Housing Foundation property, will pay for $1.12 million in projects that include a new roof to improve insulation, replacement of all windows, elevator upgrades and carpet replacement. An additional $333,607 deposit to the property’s replacement reserve will go toward appliance, kitchen cabinet and counter replacement, new paint and others projects.
Lancaster Pollard structured the refinancing and underwrote the loan, which is insured by the Department of Housing and Urban Development and fixed at a low interest rate for 30 years. Because an Iowa statute may lead to the expiration of the property’s tax abatement, the underwriting featured an unusual repayment structure.
“Ligutti Tower will pay less in debt service after the first two decades of the loan, in recognition of the potential expiration of their current tax abatement,” said Mike Ashley, Lancaster Pollard vice president. “We considered future financial factors when making this special payment schedule, which assures the property will be able to afford its debt service in the long term.” The investment banking and mortgage banking firm is working with more than 100 affordable senior living properties to refinance under recent changes to the Department of Housing and Urban Development’s underwriting criteria.
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