NEW YORK, NY - Greystone, a leading national commercial real estate finance company, has provided a $13,880,000 HUD 223(f) loan to refinance a 164-unit affordable housing property in Battle Creek, Michigan. The financing was originated by Lisa M. Fischman, Managing Director at Greystone, on behalf of The Altman Companies.
Constructed in 1981, Bent Tree Apartments in Calhoun County is a 100% Section 8 multifamily property with one midrise building and 14 two-story buildings consisting of one-, two- and three-bedroom units and a community clubhouse. As part of the refinancing, the owner obtained a new 20-year HAP contract for the property, preserving affordability for the long-term and allowing the project to qualify for a lower annual MIP of 0.25%.
The HUD-insured loan carries a 35-year term and amortization along with a low, fixed rate. In addition to refinancing, loan proceeds enable the borrower to make improvements to the property and monetize a portion of their equity in the property.
“At Greystone, we are passionate about helping our clients provide quality, affordable housing options to individuals and families in communities across the U.S.,” said Ms. Fischman. “In current economic times, HUD offers a desirable lending platform as it provides an umbrella of safety and protection from rising interest rates. A 35-year, fully amortizing loan comes with the added flexibility for qualified borrowers to reduce the interest rate - if interest rates should fall - under the current HUD interest rate reduction program.”
“Our Greystone team was a true partner in this transaction and throughout our entire portfolio refinance – their creativity in finding the right solution for us and their insights on affordable housing exceeded our expectations,” said Mr. Joel Altman, principal of the borrower. “Greystone’s reputation as a leader in multifamily and affordable lending excellence is well-deserved.”
About Greystone: Greystone is a private national commercial real estate finance company with an established reputation as a leader in multifamily and healthcare finance, having ranked as a top FHA, Fannie Mae, and Freddie Mac lender in these sectors. Loans are offered through Greystone Servicing Company LLC, Greystone Funding Company LLC and/or other Greystone affiliates. For more information, visit www.greystone.com