LAKEWOOD, WA-Berkeley Point Capital recently provided $28,515,600 for the refinancing of Echelon Apartments, a class A, 254-unit townhouse-style community located in Lakewood. The financing was structured under the FHA 223(a)(7) program that allows existing FHA loans that qualify to be refinanced. Under the program, Berkeley Point was able to significantly reduce the interest rate from 6.64% to 4.30% while restoring the loan proceeds to the original loan amount and amortizing the loan over a 37 year term.

Newly constructed in 2009, Echelon Apartments provides easy access to the major employment centers of Tacoma and Seattle. The property is owned by Lakewood Project, LLC, whose principals have over 50 years of combined experience in real estate development, construction and management of over 2500 apartment units throughout the state of Washington. Berkeley Point Capital has worked on multiple deals with the sponsor and its principals, including the original construction and permanent FHA 221(d) 4 financing of the property in 2009.

Despite the FHA sequester, Ed Belz, managing director, successfully led the Berkeley Point team to deliver a flawless loan package in an effort to accelerate FHA processing of the loan. Key aspects of the transaction included: financing a significant portion of the loan's existing prepayment penalty; obtaining a firm commitment from HUD prior to the expiration of the lockout period; and rate locking the new loan 4½ months prior to closing, enabling the borrower to secure a favorable interest rate.