Greystone has provided two agency loans totaling nearly $31m on affordable housing properties in Las Vegas, Nevada, Real Estate Capital has learned.
The firm provided a seven-year, $17.7m Freddie Mac loan with a 30-year amortization to Fore Property Company to refinance the Villanova Apartments, a housing complex featuring 348 units spread across 44 two-story residential buildings.
“The borrower needed to refinance the existing agency loan, with no cash out, to cover existing unpaid principal balance, take advantage of low rates to increase cash flow,” said Jeff Englund, a senior managing director with Greystone.
The firm provided a separate 35-year, $13m Federal Housing Administration (FHA)-insured, HUD 223 loan to Allied Argenta for the acquisition of the Summerhill Apartments, a 221-unit affordable housing community. The complex is spread across 14 two-story buildings, with amenities including a fitness room, community room and swimming pools.
Allied Argenta’s acquisition and rehabilitation costs on the asset total about $20m. Nearly half of the loan covers rehabilitation costs, estimated at $28,363 per unit, or about $6.3m, and tenants will remain in place during the rehabilitation, Englund said.
The Federal Housing Finance Agency (FHFA) in May revised the income threshold criteria for affordable housing, excluding certain affordable housing from $30bn annual origination caps that had been set earlier in the year for each of the agency lenders. Driven by low interest rates, increasing demand for rentals and construction, Fannie Mae and Freddie Mac originated $10.4bn and $10bn, respectively, in the first quarter of this year alone, a record pace that could have seen them hitting the $30bn caps by the third quarter — had the FHFA not amended the rules.
Real estate lending, investment and advisory company Greystone, a leader in multifamily and healthcare finance, provides mortgage financing across multiple platforms, including FHA, Fannie Mae, Freddie Mac, USDA, CMBS, bridge, mezzanine and other proprietary loan programs.