New York-based Greystone, a commercial real estate lending, investment, and advisory company, says it has provided a $33.2 million HUD-insured construction loan to develop Litchford 315, a new 240-unit multifamily community in Raleigh.
The loan provides 85% loan-to-project costs, and carries a low, fixed interest rate during the construction period, followed by a 40-year term with straight amortization. HUD’s 221(d)(4) loan product enables construction or substantial rehabilitation of multifamily projects with long-term, fixed, and low-rate financing. The property will be built to comply with HUD’s ENERGY STAR requirement of a 75 score or higher to achieve a Green Mortgage Insurance Premium (MIP) reduction.
Dewitt Carolinas is developing the 240-unit complex, expected to be completed in the second quarter of 2021.
“In today’s evolving financing environment, driven from uncertainty due to the novel Coronavirus, many banks, balance sheet lenders, and construction lenders are not quoting deals during the pandemic. Yet HUD is lending at a record pace and we are thrilled to be a steady and reliable lender for HUD-insured mortgages,” Greystone managing director Eric Rosenstock said in a statement. “As a leading HUD lender for multifamily mortgages, we pride ourselves on both product and market knowledge for quality sponsors nationwide, and we value those sponsors such as Dewitt put their trust in us for certainty of execution.”