Orchard Landing is a 184-unit garden-style apartment asset with pitched roofs built in 1970. The current seller had purchased Orchard Landing for LIHTC redevelopment in 2009 when prices for tax credits had dropped significantly. To solve this price drop, the developer used a Tax Credit Assistance Program (TCAP) loan to close the gap between the prices for the credits and their assumptions.
Existing Loans include a First Trust VHDA bonds – $18,500,000 originated October 1st, 2009 due April 1, 2046 at a rate of 6% (imputed 6.26%) with 60 year amortization. In 2015, Partnership entered into a Workout Agreement to make the loan interest-only through April 2016. The property is encumbered by another loan – TCAP – $2,350,000 originated in October 2009 with payments deferred until December 2041. Thereafter, paid annually over 20 years in equal payments due every December until 2061.
