Market need was a notable factor for the Willow Creek development resulting in very limited rental housing options. These factors contributed to increased market rents and waiting lists which led to less moderately priced rental housing. Willow Creek is being built, in part, to address the incredibly tight rental market and provide residents with additional rental options.
Our client contacted Paragon Mortgage Corporation because of the local market experience and extensive knowledge we bring to the Prescott and Central Arizona rental markets. Having conducted multiple financings in the area, we possess detailed knowledge of competing properties and an understanding of the operational challenges that faces them.
As an example, the developer is required to obtain separate assurances from the City regarding available water resources to the project. Paragon’s understanding of the development and local municipal code, allowed us to successfully address items like these in our HUD 221(d)(4) application, before HUD raised an issue or requested additional research.
As a HUD MAP approved lender, Paragon submitted an application to the U.S. Department of Housing and Urban Development (HUD), for Willow Creek Apartments to request mortgage insurance pursuant to the provisions of Section 221(d)(4) of the National Housing Act. This resulted in an approval from HUD of a $17,200,000, 40-year, 3.69% non-recourse loan with virtually no delay or additional follow up questions.
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