Renovations at Villas of Sorrento, Lakes of Williamsberg

Lakes of Williamsberg, located in Grapevine, Texas, was constructed in 1996. The community contains 224 one-, two- and three-bedroom units which are 60% LIHTC rent restricted. Project amenities include a swimming pool, clubhouse, basketball court, soccer field, children’s play areas, exercise room, coin laundry and is in close proximity to a public bus stop. Capital improvements for this project will run approximately $2,500 per unit.

Villas of Sorrento, located in Dallas, Texas, was also constructed in 1996. The community contains 220 one-, two- and three-bedroom units. The property is 100% LIHTC with 66-units restricted at 50% of AMI and 154-units restricted at 60% of AMI. Amenities include a swimming pool, clubhouse, basketball court, soccer field, children’s play areas, exercise room, coin laundry and an extensive after school program run by a not-for-profit organization.

Red Mortgage Capital, Inc. provided a $7,500,000 Fannie Mae DUS Choice Refinance loan at 5-years interest only for Lakes of Williamsberg and a $4,625,000 Fannie Mae DUS Choice Refinance loan at a 9-year term with 5-years interest-only for Villas of Sorrento. The properties received 10- and 12-month early rate locks, respectively, that reduced mortgage costs by several percent, allowing significant cash proceeds to fund the property renovations, restoring them to new condition.

Western Rim Property Services and its affiliate, Mansions Custom Homes, currently own and manage over 7,500 apartment homes in Dallas/Fort Worth, Austin, San Antonio, Houston and Tyler, Texas. The goal of Marcus Hiles, the founder and principal owner, is to develop "dream" communities in which everyone would love to live. Each community is designed to be "The Best Place in the City" and for each potential resident to receive the most value for their money.

Kenneth H. Bowen, Senior Managing Director of Red Mortgage Capital, Inc., said, "These excellent properties developed in the mid-1990s with 9% Low Income Housing Tax Credits were free from yield maintenance on their old loans and had performed so well that they were eligible for the best refinance terms due to low leverage and high debt coverage ratio."

http://www.redcapitalgroup.com/News/2007/071025.htm