Greystone provides USD72.7m in HUD financing for two NYC properties
Greystone Funding Corporation, a US provider of multifamily and commercial mortgage loans, has originated USD72.7m in financing for two multifamily housing projects in New York City.
Greystone managing directors Mordecai Rosenberg, Donny Rosenberg and Traverse Fournier led the effort to close the transactions.
Greystone’s experience with the US Department of Housing and Urban Development (HUD) and FHA programmes enabled the team to close the financings at highly favourable interest rates. The first property, a 224-unit building, received approximately USD40m of loan proceeds including a meaningful amount of cash-out to the owner. The second, a 152-unit building, generated USD32.7m, also with cash-out to the sponsor.
“HUD financing today represents a once in a lifetime opportunity to lock in 35-year, self- amortizing financing at rates below three per cent. More and more property owners are starting to recognise the distinct value that HUD-insured financing can provide to their portfolio – even in New York City, where owners have long relied on 5-10 year bank financing,” says Rosenberg. “Today, HUD financing provides not only the lowest available interest rate and, often, the highest level of loan proceeds, but also represents the most direct way to ensure the continued success of the project in a rising interest rate environment. It’s the optimal antidote for anyone who has lost sleep in the past over looming loan maturities.”
The FHA group is led by Betsy Vartanian, executive vice president of Greystone, and consists of 75 individuals located in eight offices throughout the US.
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