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Greystone Exceeds $1 Billion in Total Small Loan Originations with Freddie Mac and Fannie Mae Combined Year-to-Date; Reaches Lifetime Origination Total for Freddie Mac SBL Loans of Over $5 Billion
Greystone, a leading national commercial real estate finance company, announced it has reached two significant milestones in small loan production, including exceeding $1 billion in combined Freddie Mac and Fannie Mae multifamily small loans origination year-to-date in 2020. A participant with both GSE small loan programs since inception, Greystone Servicing Company LLC is one of the first Optigo® lenders to exceed $5 billion in origination for Freddie Mac’s Small Balance Loan platform since their program launched in 2014.
“The market challenges that arose this year during the pandemic particularly impacted the workforce housing market, but Greystone has remained steady as a source for Agency financing throughout it all, especially as interest rates continue to remain low,” said Rick Wolf, head of Greystone’s small loan platform. “We value our partnerships with Freddie Mac and Fannie Mae and their critical role in helping to finance the workforce housing market, which supports critically-needed affordable rental housing in all markets around the nation.”
Loans offered for the small loan asset class, which typically include properties between 5 and 50 units, range from approximately $1 million to $6 million (up to $7.5 million for Freddie Mac). The mortgages include hybrid adjustable rates, fixed rates, and interest-only options at up to 80% LTV, as well as flexible step down prepayment options. Interest-only financing is available on a case-by-case basis.
“We congratulate Greystone on achieving a tremendous milestone - being one of the first Optigo Small Balance lenders to surpass the $5 billion mark,” said Megan McElgunn, Senior Director of SBL production for Freddie Mac. “Since 2014, Greystone has been a key partner contributing to the success of our SBL platform, and we look forward to our continued work together in providing financing to this critical segment of the multifamily market.”
“Greystone continues to be a vital contributor to Fannie Mae’s small loans lending platform. Their dedication and experience in this important segment of housing has been crucial and we are grateful for their partnership in providing liquidity for workforce housing,” said Ann Atkinson, Senior Director, MF Customer Engagement, Fannie Mae. “With partners such as Greystone, we provide reliable and sustainable financing solutions for small loans nationwide. Today, more than ever, people need access to safe, decent, affordable housing; Greystone and Fannie Mae are here to fulfill that need through this difficult time.”
Greystone, a leading national commercial real estate finance company, has provided a $35,700,000 Freddie Mac loan to refinance a 280-unit multifamily property in Margate, Florida. The transaction was originated by Dan Sacks in Greystone’s New York office, on behalf of Lightstone.
The $35.7 million Freddie Mac floating rate loan carries a 10-year term with a 30-year amortization, with the first four years of interest-only payments. Built in 1988, Lakes of Margate Apartment Homes is a garden-style community consisting of 13 buildings offering modern 1-, 2- and 3-bedroom units with wood plank flooring, in-unit laundry, vaulted ceilings (in select units), private patios and balconies. Residents enjoy access to two pools and a fitness center, business center and clubhouse, tennis courts, grilling area, playground and fishing dock. Located in Fort Lauderdale between Coral Springs and Pompano Beach, the property offers easy access to I-95 and is conveniently located near restaurants, shopping and entertainment, as well as the region’s colleges and post-secondary education centers.
“It’s our job to find the right solution for every transaction – no two projects are the same, even when we’re working with long-term clients,” said Mr. Sacks. “The depth and breadth of Greystone’s lending platform enables us to get creative about how we help our clients, and the tenacity and dedication of our team means that we do this better than anyone else.”
“We strive to deliver an exceptional living experience for residents at all of our properties, and we rely on Greystone as our trusted partner to help us achieve this,” said Ariel Feldhamer, SVP, Asset Management & Investments, Lightstone.
Greystone, a leading national commercial real estate finance firm, has provided a $30 million construction loan under the HUD 221(d)(4) program for the $78 million redevelopment of Council Towers Senior Apartment Homes, an age-restricted affordable housing community located in Miami Beach, FL. The transaction was originated by Jon Morales, Senior Vice President at Greystone on behalf of EHDOC Council Towers Limited Partnership.
Council Towers comprises two, 12-story buildings located on Collins Avenue (at 5th and 10th Streets) in Miami Beach, with a total of 250 one-bedroom units with rental subsidy provided by HUD under a Project-Based Section 8 contract. The substantial rehabilitation of the property, which was originally constructed under HUD’s Section 202 program 40 years ago, will upgrade, preserve and continue to provide quality affordable housing for low-income seniors (below 60% AMI) over age 62.
Sources of funding for this transformative project include the $30 million HUD-insured 221(d)4 loan from Greystone as well as Low-Income Tax Credit Equity, a Sellers’ Note, and Reserve Transfer. The non-recourse HUD-insured loan carries a 40-year term at a fixed, low interest rate.
“Preserving and providing high-quality affordable housing for seniors in Miami Beach is a priority for us, and orchestrating a Section 202 rehabilitation into a stunning community with unparalleled ocean views will deliver a needed respite for our residents,” said Steve Protulis, President and CEO, Elderly Housing Development and Operations Corporation (EHDOC). “We are grateful for all of our partners who made this transaction possible, including Stratford Capital for critical tax credit equity. We hope that the 4% LIHTC program continues to be a viable platform for preserving and creating affordable housing.”
The re-development team will be led by Roland J. Broussard, Vice President of Development for EHDOC, and Jason B. Duguay, Vice President of Stratford Capital Group Development (SCG), along with Larry Hecky, Chief Architect of The Hecky Group and Tom Morrissey, President of T. Morrissey Construction. The planned timeline for tenant-in-place renovation is projected to take up to 20 months. In addition to exterior façade and common area renovations, individual units will have new kitchens installed with energy-efficient appliances, new bathrooms, decorative lighting, new flooring, new windows and sliders, new roof, complete elevator modernizations, and paint, resulting in a complete refresh for the existing 250 homes.
“Frankly, transformations such as this are hard to come by, but working with a team like Stratford Capital and Greystone having expertise in affordable housing, tax credits, and HUD-insured financing created an opportunity to provide incredible residences for a community that truly deserves it,” added Mr. Broussard.
“Working with sponsors such as EHDOC is such a pleasure because their mission to deliver affordable housing is what drives them,” added Mr. Morales. “This transaction was highly complex, but the end result will be such a treasure to the community, and we are thrilled to have played a part in it. Greystone would also like to congratulate Melanie A. Ribeiro, the Interim President / CEO of EHDOC, who assumes her new role in September 2020. We look forward to working with her and her team on future affordable housing development opportunities."
Greystone’s Year-to-Date FY2019-2020 Volume for Multifamily and Healthcare Loan Firm Commitments Totals $2.6 Billion
Greystone, a leading national commercial real estate finance firm, announced it ranks #1 based on both volume of multifamily and healthcare Firm Commitments issued by the U.S. Department of Housing and Urban Development (HUD) for the first nine months of the agency’s 2019-2020 fiscal year ending June 30, 2020. Since HUD’s fiscal year began in October 2019, Greystone originated and obtained Firm Commitments for 136 HUD-insured loans totaling $2.59 billion, representing 14.7% market share – the largest of all lenders – for HUD-insured multifamily and healthcare loans.
Greystone ranked highest based on dollar volume for Firm Commitments issued under HUD’s MAP program with $1.66 billion in origination volume for multifamily properties, as well as HUD’s LEAN program, totaling $933 million in origination volume for healthcare properties, which include skilled nursing and assisted living facilities. Greystone’s fiscal YTD healthcare loan volume is more than double the volume generated by the #2 ranked lender and represents 3 times the number of loans originated.
Greystone’s consistent success in HUD-insured lending is attributed to the firm’s extensive underwriting expertise, and the accessibility of Greystone’s proprietary bridge-to-HUD program, which seamlessly guides borrowers from acquisition to permanent exit financing after a stabilization period.
“It’s a testament to our team’s commitment to clients that they have generated a record amount of loan volume during the headwinds of today’s ongoing pandemic,” said Nikhil Kanodia, head of Greystone’s FHA lending group. “Today’s historically low interest rates have proven time and again that the long-term, non-recourse HUD-insured loan product is a constant in a sea of change. HUD continues to serve as an excellent ally in helping to finance multifamily, affordable, new construction, and critical healthcare properties nationwide.”
Greystone, a leading national commercial real estate finance firm, has provided a $49 million construction loan under the HUD 221(d)(4) program for the development of Katy Apartments, a new multifamily community located in Katy, Texas. The transaction was originated by Shana Daby, managing director at Greystone on behalf of AMCAL Equities, LLC.
The $49 million FHA financing will fund 85% of the total project costs and is structured as a non-recourse, fixed-rate construction loan that automatically converts to a 40-year, fully-amortizing permanent loan upon stabilization. With this green-certified and energy efficient project, the borrower also qualifies for reduced Mortgage Insurance Premium (MIP).
Upon completion, Katy Apartments will consist of 324 market-rate and income-restricted rental units spanning 12 garden-style buildings. Each of the one-, two-, and three-bedroom units will feature modern appliances, in-unit laundry facilities, and private outdoor living space. Residents will also enjoy access to the community’s clubhouse and fitness facility, business center, media room, cabana, and swimming pool. The property is located in the desirable west Houston metro suburb of Katy, one of the region’s most sought-after school districts. Its proximity to Interstate 10 provides easy access to the area’s major retailers, restaurants, entertainment and employers, and to downtown Houston.
“We are thrilled to team up with AMCAL again to secure the long-term financing for a project that will bring much needed market-rate and workforce housing to the Houston metro region,” said Ms. Daby. “I am grateful that AMCAL continues to trust our team’s ability to execute on solutions that make sense for each of their transactions, at every stage of a project’s lifecycle.”
“We are delighted that Shana and the rest of the Greystone team worked tirelessly to deliver the best terms for us on this project and others – Greystone’s caliber of service and attention to detail is simply unmatched in this industry,” said Stephen Clarke, Vice President, Market Rate and Student Housing for AMCAL Equities, LLC.
Greystone, a leading national commercial real estate finance firm, has provided a $51.3 million HUD-insured loan to refinance a 206-unit multifamily property in Hayward, CA. The transaction was originated by Shana Daby, managing director at Greystone on behalf of AMCAL Equities, LLC.
The non-recourse HUD 223 (a)(7) loan refinances the property for a 35-year term and amortization, resulting in a significant reduction in annual debt service payments. By achieving a high energy performance score, the property also qualifies for a reduction in Mortgage Insurance Premium for green standards, from 65 to 25 basis points annually.
Constructed in 2017, Cadence Apartments is a luxury apartment community situated on 2.9 acres near Dixon Street. Located directly across from the South Hayward BART station, residents have easy access to San Jose, The Peninsula or Oakland. Cadence is close to downtown Hayward and California State University, East Bay (CSUEB) is only three miles away. Amenities at Cadence Apartments include a state-of-the-art fitness center with separate yoga room, a resident lounge, pool and spa deck, clubhouse, business center, pet spa, self-service bike parking and repair, a community room and concierge services.
“At first it seemed counterintuitive that an (a)(7) would make sense given the prepayment penalty on the existing loan, but the combination of the dramatic decrease in interest rates and the lower Mortgage Insurance Premium for green announced by HUD since the initial closing, resulted in significant savings,” Ms. Daby continued. “AMCAL is a premier sponsor and I’m delighted to have been a part of this transaction, first as MAP underwriter for the original 221(d)(4) construction financing, and now as originator for the (a)(7) refinance. I’m grateful for the trust they continue to have in me and Greystone.”
“Shana has been a respected industry contact of AMCAL’s for many years, and we are thrilled to work with her and Greystone to take advantage of this window of opportunity for achieving green MIP and lowering overall debt service,” said Stephen Clarke, Vice President, Market Rate and Student Housing, AMCAL Equities, LLC.