Greystone Closes Sale and Financing of HUD Multifamily Acquisition in Michigan
Greystone and Greystone Bel Real Estate Advisors teamed up to close the sale of, and provide financing for, a multifamily property acquisition in Marquette, Michigan. The sale was closed by Cary Belovicz of Greystone Bel, who represented both the seller and buyer, and the 85% LTV financing was originated by John Marr, Managing Director, and Reuben Dolny, Vice President, of Greystone.
The $7.3 million in HUD-insured acquisition financing for Woodview Village includes a low, fixed rate and 35-year term that is fully amortizing after 35 years. The 124-unit property, located just over a mile from downtown Marquette, is 100% occupied and comprises primarily one- and two-bedroom units. The property, made up of two non-contiguous parcels, is spread over 8.2 acres and 13 total buildings and has been renovated and upgraded in the last several years, enabling the property to further qualify for HUD’s Green Mortgage Insurance Premium (MIP) program for an even lower interest rate.
“It’s unique to complete a HUD acquisition loan, given the timeline to close can be a bit longer than is desired for a sale, but the buyer was flexible, and with today’s market conditions changing on a dime and the additional savings from Green MIP, it absolutely worked in their favor,” said Mr. Marr. “There’s no question that FHA’s long-term, low-rate financing is one of the best options on the market.”
“This transaction was a full collaboration between the sales advisory team, our debt team, and HUD,” added Mr. Dolny.
“When we can provide clients with end-to-end service from sales to financing, and meet all of their needs, we have achieved our goal of being the unrivaled CRE partner in the industry,” said Mr. Belovicz.
“We are extremely happy with the overall experience working with the Greystone and Greystone Bel teams and the historically low terms that we were able to secure for our investors on this transaction,” said David Kamara, Managing Director of Cape Sierra Capital, the buyer.