Location: Washington, D.C.
Transaction Type: FHA223(f) Refinance Multifamily
Project Cost: $49 million
LGA Capital was engaged to underwrite, structure and arrange the refinancing of Massachusetts House Apartments in Northwest Washington, D.C.
Because of the complexity and timing involved and the age of the building and repairs required, LGA structured this project as a two-step transaction. Existing debt was retired with a short-term bridge loan while application and underwriting were undertaken for a long term refinancing with FHA’s fully amortizing 223(f) loan program.
By structuring the refinance in this manner, Massachusetts House benefited from long term financial stability, low cost of capital, and major systems overhaul. Because LGA was acting as both the broker to the building owner and as a correspondent to the lender, LGA was able to provide these services to the building owner at no additional cost.
The project was successfully closed in May 2018.