Greystone, a leading national commercial real estate finance company, has provided a $43,238,800 HUD Section 223(f) loan to refinance a 272-unit affordable housing community in Lewisville, Texas. The transaction was originated by Shana Daby, Managing Director at Greystone, on behalf of AMCAL Equities, LLC, a longtime client.
Constructed in 1985, Oak Tree Village Apartments in Denton County consists of 24 garden-style buildings featuring one-, two- and three-bedroom units. The sponsor acquired the property using a Greystone bridge loan. The asset was an existing mixed-income LIHTC/market project outside of its initial 15-year LIHTC compliance period. The project underwent a conversion to the Public Facility Corporation, which involved a partnership with the Plano Housing Authority and a ground lease and regulatory agreement. In the regulatory agreement, the existing LIHTC restrictions were extended to the duration necessary for the project to qualify for a lower annual MIP of 0.35%. In exchange for additional affordability tied to the PFC structure, the property will benefit from a 100% property tax exemption.
The $43,238,800 HUD-insured 223(f) loan carries a 35-year term and amortization along with a low, fixed rate. In addition to extending affordability, the project will benefit from a moderate rehab of approximately $15,000 per unit.
“Our bridge-to-HUD program enables clients to realize their vision for their properties while pursuing permanent financing,” said Ms. Daby. “We are passionate about helping to provide quality, affordable housing options and work tirelessly to secure the right financing for AMCAL and others that are bringing market-rate and affordable housing to communities like the Dallas-Fort Worth area.”
“Shana and our Greystone team always deliver and execute on solutions that make sense for our projects, at every stage of their lifecycle,” said Stephen Clarke, Vice President, Market Rate and Student Housing for AMCAL Equities, LLC. “We rely on Greystone for their industry knowledge, outstanding service and attention to detail – truly, they are a trusted partner for our business.”