Willina Ranch Apartment
HUD 223(f) Market-Rate Refinance
The Real Estate
Willina Ranch is a 175-unit market-rate apartment community located in Bothell, WA., a suburb of Seattle. Comprised of 16 two-and three-story garden style apartment buildings, one (1) two-story townhouse building, and one (1) single-story community building, the complex was constructed in 2000 and is situated on a single 16.36 acre lot.
The Client’s Objectives
The client sought to take advantage of the favorable interest rate environment by replacing their existing mortgage with a long-term, lower-rate HUD-insured mortgage. A recapitalization allowed them to achieve multiple objectives including the full funding of replacement reserves, completion of required and elective repairs, and an equity take-out at loan closing. Pre-payment of the existing mortgage on the property required payoff of a defeasance expense in excess of $2M, which the client sought to fund through loan proceeds.
Based upon the client’s strong multifamily property management experience, the excellent physical condition and favorable historic occupancy levels of the property, and the strength of the Seattle, WA market area, Rockport was able to structure a long-term (35-year), non-recourse HUD 223(f) loan with proceeds sufficient to meet the diverse capital requirements of the client, including full payment of the defeasance obligation.