Greystone has provided a $25 million Agency refinancing on a 384-unit apartment complex in Kentwood, Michigan to Alliance Management.
The 12-year Fannie Mae Delegated Underwriting and Servicing (DUS) loan holds a 30-year amortizing structure and is interest-only for the first two years. The structure allows Alliance Management to sell or refinance the Hidden Lakes Apartments property after the eighth year with a small prepayment penalty.
“The refinance structure will allow us to cash out and monetize investor equity as well as fund our ongoing property upgrade program, which is a key differentiator for us in this competitive Grand Rapids market,” said Robert Foote, CEO, Alliance Management, in prepared remarks.
Hidden Lakes Apartments consists of 384 one- and two-bedroom apartments with amenities including a concierge service, cyber café, travel services and a clubhouse with a pool and spa.
Joe Mosley, executive managing director and head of Agency lending at Greystone, noted that the FHFA’s decision last month to increase the Fannie Mae and Freddie Mac lending caps by $4 billion for 2016, from $31 billion to $35 billion, was an incentive for the firm to do more Agency loans in the future.
“Appetite for Fannie Mae refinancing is incredibly strong,” said Mosley, “and with recent lending caps raised, we are thrilled to be able to execute this option for more borrowers as need demands.”
Some anticipate that the GSE loan volumes total may eclipse $100 billion in 2016, as Real Estate Capital reported. Fannie Mae and Freddie Mac provided a combined $89.6 billion in new multifamily lending volume last year, according to numbers the GSEs released in February.