Greystone’s FHA lending group closed 13 HUD-insured loans in April, including a $19 million 221(d)(4) loan on the 190-unit Radnor Towers affordable housing property in Nashville, Tennessee.
The fixed-rate construction loan carries a 40-year term and funds the acquisition and substantial rehabilitation of the property in combination with tax-exempt bonds and 4 percent low income housing tax credits.
Knoxville-based affordable housing developer LHP Development reportedly sold the 16-story property at 12 Thuss Avenue to an undisclosed buyer for $14.5 million but will continue to manage the property and oversee renovations. The new ownership is required to keep the Section 8 apartment complex affordable for another 40 years.
“This was not just about ‘another deal’ – the preservation of affordable housing for 190 families was dependent upon our successful execution,” said Mordecai Rosenberg, head of Greystone’s FHA lending group.
Greystone noted in a statement that it continues to invest heavily in technology and process upgrades in order to speed up the HUD loan process, in this case closing in under six months, and provided an early rate lock at the time of engagement.
Rosenberg called the deal a “testament to the level of creativity and agility that we bring to bear for our clients,” noting that “many borrowers still expect a HUD loan process to take 12 to 18 months and assume that they must endure interest rate risk throughout the underwriting process.”