News - 2008
080510
Red Mortgage Capital Provides $5.8 Million FHA 223(f) Refinancing of Four Existing 202 Properties in Kentucky and Indiana
Graceworks Lutheran Services - Four Property Pool
Various Locations in Kentucky & Indiana
Columbus, Ohio, August 12, 2008 — Red Mortgage Capital, Inc., one of the nation’s top FHA/MAP/LEAN mortgage lenders and the mortgage banking arm of comprehensive capital provider, RED CAPITAL GROUP, recently provided FHA 223(f) refinancings of four existing 202 properties in the combined amount of $5,861,000 for Graceworks Lutheran Services.
Shepherd of the Valley Community (LaGrange, Kentucky) was constructed in 1988 and contains 50 units. St. Paul Trinity Community (Maysville, Kentucky) was constructed in 1989 and contains 32 units. Lutheran Community (Lawrenceburg, Indiana) was constructed in 1990 and contains 40 units. Trinity Community (Union City, Indiana) was constructed in 1988 and contains 30 units. The combined refinancings generated over $47,500/year in debt service savings and allowed for a combined $455,500 in repairs and capital improvements.
Using the mortgage proceeds generated from the 223(f) refinances, Graceworks Housing Services was able to make significant repairs and capital improvements at the properties. Such improvements included the replacement of major building components such as windows, roofing, HVAC systems, water heaters, and so on, which serve to provide added comfort and convenience to the properties’ residents and prolong the economic viability of the real estate. Exterior enhancements, such as upgraded landscaping, asphalt overlay of the parking lots, and installation of new gazebo/picnic/patio areas provide desirable outdoor recreational space for the residents. Cosmetic upgrades to the interior décor, such as fresh paint, new flooring and new appliances in the units, increase the marketability and aesthetic quality of the properties. The St. Paul Trinity Community was even able to include the addition of a new sunroom in its refinance transaction, which not only adds valuable community space for the residents, but some much needed office space for the property’s social service coordinator.
Graceworks Housing Services has advanced its mission and values since its incorporation in 1926. Its programs and services are offered in 50 locations throughout southwest Ohio, southeast Indiana and northern Kentucky.
Tracy W. Peters, Managing Director of Red Capital Markets, Inc. said, "Graceworks is an organization dedicated to its residents. By taking advantage of the favorable environment for the refinancing of their Section 202 properties they are able to fund building improvements and resident services that will benefit their residents for years to come. We appreciate the opportunity to work with such a dedicated and highly regarded organization."
