Pillar Originates More Than $4.7 Million HUD Interest Rate Reduction Program Loan To Refinance Affordable Seniors Housing Property In Detroit


Refinance Affordable Seniors Housing Property In Detroit
Bloomfield Hills, MI (September 19, 2017) – Pillar Financial, a division of SunTrust Bank and an industry leader of financing solutions for affordable and market rate multifamily and healthcare properties, announced today that it has originated a $4.775 million HUD Interest Rate Reduction Program (IRRP) loan to refinance Delta Manor, Inc., an affordable seniors housing property located in downtown Detroit, Michigan. The property consists of 99 one-bedroom units that are available to low-income seniors who are at least 62 years old at the time of occupancy. The property is owned and operated by Delta Manor, Inc., a private, nonprofit foundation. The foundation’s governing board provides a variety of service-focused programs for the tenants of Delta Manor, Inc.

David Wilkins, Managing Director of Pillar in the Bloomfield Hills office, originated the HUD fixed-rate, 26-year term loan with a 26- year amortization schedule. “We secured the HUD IRRP loan to modify an old loan and to cut the interest rate in half,” said Wilkins. “The new loan provides excess funds that will allow the sponsor to keep the property well maintained into the future,” added Wilkins.

Delta Manor, Inc. is designated 100 percent Section 8 seniors housing. The HUD transaction closed on August 31 and will not impact rents, which will remain affordable for low-income seniors.

“We appreciate the assistance Pillar provided in completing the refinancing that will certainly benefit our residence for years to come,” said Barbara J. Anderson, President, Delta Manor, Inc.

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