COLUMBUS, Ohio (Oct. 30, 2006) – A Lewistown, Ill., apartment complex for low-income seniors will make $400,000 in immediate repairs and upgrades through a $3.93 million refinance provided today by Lancaster Pollard.
An additional $335,000 in future repairs also is included in the transaction through a hefty deposit to Spoon River Towers’ replacement reserve. The scope of the repairs should help the 100-unit property increase occupancy.
“We’re going to be able to do lots of things -- the carpeting, remodeling our front office area, installing hands-free phones in our elevators,” Administrator Linda Chipman said. “I myself am excited that the office area is going to get remodeled.”
Residents will receive new kitchen cabinets and additional wall cabinets, and air conditioning will be added to the hallways. The five-story property also will install a new water booster to improve water pressure on the top floors. “All of it together is going to help keep our residents happy and comfortable,” Chipman said.
Lancaster Pollard structured the transaction, which reduces Spoon River Towers’ annual debt service by nearly $27,000. The property will be able to increase its liquidity through the accumulation of these debt service savings, strengthening its balance sheet. Spoon River Towers was built in 1980 using a Section 202 loan from the Department of Housing and Urban Development. Refinancing Section 202 direct loans has lately become an efficient way to access capital for repairs and upgrades to preserve the affordable housing supply.
###
|
|
|
