Background

Limewood and Pineridge Apartments are market rate multifamily housing projects located on large naturally landscaped sites in Battle Creek and Grand Rapids, Michigan.  The projects were developed in the late 1980’s by Cardinal Properties, a leading producer of modular housing in the 70’s and 80’s.  The Owner’s meticulous attention to project maintenance helped preserve these modular housing projects.  The Owner looked to Rockhall to refinance his quickly maturing loans.

Challenges

While well maintained, the projects contained polybutylene piping which was common in Cardinal buildings.  Polybutylene piping has been known to fail and break down over time.  Also, the original painted wood siding in place on many of the buildings had passed its useful life and diminished the properties' curb appeal. 

Outcome

Rockhall provided FHA insured fully amortizing, non-recourse loans in time to pay off the maturing debt.  The loan budget included funds for the piping and exterior siding replacement for both projects. The Owner was able lock in low, 35-year-fixed interest rates in a historically low interest rate environment, helping him achieve maximum returns for his investors.