Greystone Provides $22.6 Million in HUD-Assured Financing for Multifamily Property in Detroit, Michigan
Greystone, a leading national commercial real estate finance company, provided a $22.6 million HUD-insured 223(f) loan to refinance a 96-unit multifamily property in Shelby Township, in Michigan. The funding was initiated by Lisa Fischman of Greystone’s New York office, on behalf of Aria of Shelby LLC.
Shelby’s Aria in Macomb County is a newly constructed townhouse-style rental community comprised of 96 two- and three-bedroom units in 18 freestanding walk-up buildings. The fixed rate non-recourse financing of $22,600,000 has a term and amortization of 35 years. In addition, the property has obtained green certification by NGBS. Going green gets Aria a steeply reduced mortgage insurance premium – a MIP of 0.25% versus 0.60%. In addition to refinancing, the loan proceeds allow the borrower to monetize a portion of the equity in the property.
Notably, the Temporary Certificate of Occupancy (TCO) was issued for the property in May 2022 and the permanent retirement with HUD closing just four months later. The transaction took full advantage of the recent HUD amendment that allows a HUD 223(f) refinance application to be submitted for a newly constructed multifamily property after 30 days of a debt service coverage ratio (DCSR) of 1, 18, and closing is permitted to occur after 90 days of said DSCR.
“Our underwriting team excels in this broad multi-family lending platform that allows us to provide the right financing for each client’s unique situation,” said Ms. Fischman. “We are committed to finding creative and innovative solutions for our customers, and we work tirelessly to ensure that their experience with Greystone is nothing short of exceptional. »
“Our Greystone team were a true partner in this transaction, they understood what we needed and expertly navigated the lending landscape so that we could achieve our goals for this property,” said Ms. Cathy Lombardo, principal of the borrower. “Greystone is truly best in class among multi-family lenders.”