Greystone announced it has provided a $6,230,000 Freddie Mac Forward Rate Lock Tax-Exempt Loan (“TEL”) – the first in the industry for construction-to-permanent financing – for the significant rehabilitation of Mayberry Townhomes, a 70-unit affordable housing development in San Diego, CA.
The Freddie Mac TEL for this transaction is a 24-month forward rate lock with an 18-year permanent loan term and 35-year amortization with an actual loan to value ratio of 82%. Mayberry Townhomes is an existing multifamily community being acquired by Community HousingWorks of San Diego, CA, which will see renovation and new construction utilizing 4% Low Income Housing Tax Credits and construction financing from Bank of America Merrill Lynch, with Greystone and Freddie Mac providing the permanent financing.
"We are thrilled to have closed the first Freddie Mac Forward Rate Lock TEL for construction-to-permanent financing as part of the transformation of Mayberry Townhomes. As always in a loan transaction, there are many parties involved, and Greystone’s experience in this arena combined with our strong working relationship with Freddie Mac, helped this transaction to close smoothly," said Jeff Englund, senior managing director and head of Greystone's affordable housing lending group.
Constructed in 1984, Mayberry Townhomes comprises 18 two-story townhouse buildings that are currently restricted at 50% to 80% of Area Median Income (“AMI”). As a result of the Freddie Mac Forward Rate Lock TEL, the property will receive significant improvements estimated at $35,623 per unit as well as the addition of an office and meeting room. Additionally, the property features solar equipment for energy generation and use. Upon completion of the renovations, the property will be restricted to 50% and 60% AMI levels.
“This acquisition of Mayberry Townhomes will lower rents and make more of these desirable townhomes affordable to working families in San Diego’s hot rental market,” said Anne B. Wilson, senior vice president of San Diego-based developer Community HousingWorks.
“Mayberry Townhomes is a great demonstration of the Bank’s commitment to working with developers and lenders to generate economic growth and create safe, high-quality affordable housing for local families,” said Charmaine Atherton, senior vice president of community development at Bank of America Merrill Lynch.