Amarillo, TX; 338 Units, Market-Rate Family Housing
River Falls and Canterbury Apartments are garden apartment complexes which provide moderate-income housing for young professionals and families in Amarillo, Texas.
The projects were developed in the late 1970’s. The current owner acquired the portfolio at a discount after years of deferred maintenance and neglect by the previous ownership. Occupancy was low and the project struggled to break-even when the Owner first acquired the portfolio. Initially, the Owner secured lines of credit and invested personal equity to finance the first stages of repairs and improvements to stabilize the project. Once stabilized, the Owner secured low interest FHA financing through Rockhall to pay down more expensive lines of credit and to secure additional funds for further capital repairs and improvements. Years later, after completing the full renovation of the project, the Owner again looked to Rockhall and FHA financing to cash-out while interest rates were still low.
Rockhall was able to refinance the portfolio through FHA 223(f) refinance loan program that provided the cash-out the Owner was looking for. The cash-out allowed the Owner to recoup years of investment and sweat equity. The new loan, locked in at an even lower interest rate (3.30%) and longer amortization term (420 months), ensured that the Owner would maximize his return on his investment for the foreseeable future.