Terrace Manor, WC Smith’s more recent all-affordable multifamily property, reached a milestone at the end of July, as its construction loan converted to a permanent loan.
The $41 million construction loan, obtained through Wells Fargo, was set to mature Aug. 3. To convert to the permanent loan, Terrace Manor had to have reached stabilization, satisfied financial performance covenants, and the construction loan paid off in full, among other conditions.
Alternatively, the company could have requested an extension of the construction loan. However, we would have incurred additional fees and costs.
The DC Housing Finance Agency supplied the permanent loan through the US Department of Housing and Urban Development’s Risk-Share program.
To avoid having to extend, the Terrace Manor team worked nonstop to secure the paperwork and satisfy the requirements.
According to an official at DCHFA, the Terrace Manor transaction was the only conversion this year that did not require an extension.
Terrace Manor also received funding under the federal and state Low-Income Housing Tax Credit (LIHTC) program. Wells Fargo is the federal LIHTC partner, while Sugar Creek Capital is the DC partner.
