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.
Greystone, a leading national commercial real estate finance firm, has provided a $15,326,000 Fannie Mae Delegated Underwriting and Servicing (DUS®) loan to refinance a 208-unit multifamily property in Lindenwold, New Jersey. The transaction was originated by Dan Sacks, Managing Director in Greystone’s New York office, with Jack Miller of Platinum Capital Group acting as the correspondent on behalf of Goldcrest Properties.
The $15.3 million Fannie Mae loan, which refinances an existing Greystone bridge loan used to purchase the property in 2019, carries a 12-year term, three years of interest-only payments, and 30-year amortization. For the transaction, Greystone leveraged Fannie Mae’s Green Rewards program, as the borrower committed to using a portion of the loan proceeds for making energy and water usage upgrades to the property.
Originally built in 1971, Kingsrow Apartment Homes is a garden-style community consisting of one- and two-bedroom units featuring walk-in closets, dishwashers, and in-unit laundry hook ups (in select units). Residents enjoy access to the property’s swimming pool, and picnic areas, as well as laundry facilities and onsite parking. The pet-friendly property is close to local shopping and a nearby train station offers easy access to downtown Philadelphia, just 15 miles away. Its proximity to major highways enables residents to commute to employment centers in nearby Camden and Cherry Hill, as well as Philadelphia.
“We excel at helping clients expand their real estate portfolios and we are extremely grateful when they keep coming back to us to do so,” said Mr. Sacks. “We are thrilled that we have been able to see this transaction through from the very beginning, and we look forward to working with Goldcrest Properties again in the future.”
“This is our seventh transaction with the Greystone team in about a year’s time – the level of service and attention to detail is the best in the business,” said Hillel Hertz, principal borrower and CEO of Goldcrest Properties, which owns and manages approximately 900 multifamily units in the Pennsylvania/New Jersey market. “Our team has consistently been able to recognize our needs and work creatively within the constraints of a fast-changing market to get us financing terms that exceed our expectations.”
Greystone, a leading national commercial real estate finance firm, has provided a $30,821,000 Freddie Mac Forward Tax-Exempt Loan (TEL) to help finance the addition of 172 units to an existing affordable housing property in Bloomington, MN. The loan was originated by Kyle Jemtrud, managing director at Greystone, on behalf of Aeon.
The Freddie Mac affordable loan carries a two-year forward period plus an 18-year term at a fixed rate with a 40-year amortization. The financing, in combination with other capital sources, will be used to construct 172 new apartments on land adjacent to the existing Village Club apartment complex located at 1930 E. 86th St. The two new four-story buildings will include three- and four-bedroom homes to serve larger families. With construction due to begin in August 2020, the community will be known as SoLo Apartments.
Today, the 306 existing units at the adjacent Village Club serve mixed-income residents, with more than half of the units at or below 60 percent of the area median income and the remaining units at or below 80 percent of the area median income. Two thirds of the new units to be constructed at SoLo will be affordable at or below 60 percent of the area median income, and one third will be affordable at or below 80 percent of the area median income. The existing and to-be-constructed buildings are on an almost 18-acre site that features an indoor and outdoor pool, a racquetball court, a movie room and updated community space.
“Greystone’s knowledge and expertise in affordable housing, as well as their strong relationship with Freddie Mac, were all integral to this financing package being a success,” said Alan Arthur, President and CEO of Aeon.
“This Freddie Mac program is a fantastic option for affordable housing developers. It allows them to secure long-term exit financing on tax credit construction projects before they ever break ground,” said Mr. Jemtrud. “We truly enjoy working with Aeon and helping them finance their portfolio to serve the residents of Minnesota.”
Greystone, a leading commercial real estate lending, investment, and advisory company, has provided a $10,500,000 Fannie Mae Delegated Underwriting and Servicing (DUS®) loan to refinance an affordable housing property in Mankato, Minnesota. The transaction was originated by Kyle Jemtrud, managing director at Greystone, on behalf of Mankato MAHC LLC.
The $10.5 million in Fannie Mae financing carries a 12-year term at a fixed rate with a 30-year amortization, and four years of interest-only payments. The non-recourse loan refinances River Bluff Apartments, a 150-unit rental community located 80 miles southwest of downtown Minneapolis, which was acquired by the sponsor in 2017.
“Refinancing during a pandemic was not without its challenges, but the sponsors came prepared for the new capital reserves requirements, and were able to harness long-term financing to maintain this critical affordable housing,” said Mr. Jemtrud. “It’s been a pleasure working with this team as they grow their multifamily portfolio.”
“Our mission is to provide quality housing to our community in Minnesota, and Greystone has been a critical part of that process,” said Matthew Teasdale, Key Principal of the sponsor / borrower. “Their guidance in navigating the changes in terms and requirements, as well as Kyle’s local market knowledge, has been invaluable.”
New Team Brings Leading Financial, Regulatory, Tax & Development Resources Together to Revive a Housing Sector in Crisis
Greystone, a leading commercial real estate lending, investment, and advisory company, and Lappin Associates, a leading affordable housing advisory and development services firm, today announced a joint venture that will aim to deploy billions in capital for the financing, preservation and stabilization of affordable multifamily housing. The joint venture will source long-term, low-rate Fannie Mae, Freddie Mac and HUD-insured loans that will enable owners of affordable multifamily projects to complete moderate renovations in order to prolong the life of their properties.
As the current pandemic worsens the environment for the creation and protection of affordable housing, owners need to seek creative solutions to address growing demand. Recognizing this need, Greystone and Lappin Associates are combining strengths to provide a life raft for affordable properties. Greystone is the #1 multifamily and healthcare provider of HUD-insured loans, a top provider of Fannie Mae and Freddie Mac affordable housing loans, and is the General Partner of America First Multifamily Investors, L.P. (Nasdaq: ATAX), which manages over $1 billion in assets consisting primarily of mortgage revenue bonds intended for multifamily affordable housing construction and permanent financing. Along with Greystone’s extensive experience and capabilities in structuring finance solutions for the affordable sector, Lappin Associates is a leading on-the-ground development advisor whose principal has over 35 years of expertise in navigating federal, state and local regulatory and tax requirements. Lappin Associates is led by Michael Lappin, the former CEO of the Community Preservation Corporation. During his tenure at CPC he oversaw the preservation and development of almost 95,000 affordable units in NYC.
“The nation’s affordable housing stock – and particularly New York City’s – is in crisis, but there is a proven method for preserving properties both financially and physically with the help of government-backed loans and a strategic plan for long-term upgrades and efficiency,” said Stephen Rosenberg, CEO and founder of Greystone. “We believe this joint venture brings together the strongest providers in the affordable housing sector to give new life to critical residential housing, and we are thrilled to make an impact for both private and non-profit owners and their many residents.”
“Well over one and a half million low- and moderate-income New Yorkers live in private and non-profit owned rental housing. Much of this housing is old and needs critical upgrading. In the current crisis, almost all of this housing is stressed financially and needs a lifeline. Using techniques pioneered by CPC in the 70’s and 80’s that preserved tens of thousands of apartments, our work with Greystone will seek to provide a safety net for this housing. By leveraging today’s historically low interest rates, combined with help from the government and the private capital markets, this housing can remain physically and financially strong and provide affordable and healthy housing for this and the next generation. Our initiative with Greystone can set an example of how this can be done on a meaningful scale in New York and in other urban centers,” said Michael Lappin, founding partner of Lappin Associates.
