Clairmont oaks, decatur, GA
What: 296 unit senior high-rise, built in 1975
Client: Clairmont Oaks, Inc., 501(c)3 Georgia non-profit
Original Financing: HUD Insured 236 Loan, Partial Section 8 contract, Flex Sub Loan
GDG Services: Preservation Study, MU2M of Section 8, deferral of Flex Sub Loan, refinancing with local community bank loan
Impact Statement: Clairmont Oaks engaged GDG to discuss refinancing in advance of their 236 loan maturing in 2015. At maturity of the 236 loan, a very large Flexible Subsidy loan would have to be paid off, and this was the focus of their concern. Additionally, the owner had struggled with expensive replacements of their heating and air system, something that we hoped we could address through a refinancing. GDG was able to successfully bring the owner to a closing on a new $4.5M loan with a local lender, as well as obtain HUD approval to defer $4.2M of the Flex Sub loan. This allowed for a full replacement of the HVAC system, as well as other needed upgrades to the property. The refinancing would not have been possible without the 42% Mark-up-to-Market of the Section 8 contract.
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