Warr Acres, OK
In August 2018, Archway Fund closed a $2.2MM refinance loan secured by a 138-unit, tax-credit, 90% occupied, apartment complex located in Warr Acres, OK. The loan-to-value was 68%. Cash flows break even due to the fact that the Subject is a Section 8 property and is 55% subsidized by OHFA. Archway was able to get comfortable with the tax-credit restrictions, build in an interest deficit reserve to cover the shortfall and close the gap until the property sells. The borrower’s note was coming due and needed an expedited close. The interest rate was 9.0% with a 12-month term. No appraisal was required, and the borrower did not have to personally guaranty the loan.