News

Greystone Provides $22.6 Million in HUD-Insured Financing for Multifamily Property in Detroit, Michigan

November 02, 2022

Greystone has provided a $22.6 million HUD-insured 223(f) loan to refinance a 96-unit multifamily property in Shelby Township, Michigan. The financing was originated by Lisa Fischman from Greystone’s New York office, on behalf of Aria of Shelby LLC.

Aria of Shelby in Macomb County is a newly built townhouse-style rental community consisting of 96 two- and three-bedroom units spread across 18 detached, non-elevator buildings. The $22,600,000 non-recourse, fixed rate financing carries a 35-year term and amortization. Additionally, the property secured Green Certification through NGBS. Going green gains Aria a heavily reduced Mortgage Insurance Premium –, an MIP of 0.25% vs. 0.60%. In addition to refinancing, loan proceeds enable the borrower to monetize a portion of the equity in the property.

Notably, the temporary certificate of occupancy (TCO) was awarded for the property in May 2022 and the permanent takeout with HUD closing just four months later. The transaction took full advantage of the recent HUD amendment that allows an application for a HUD 223(f) refinance of a newly built multifamily asset to be submitted after 30 days of a debt-service coverage ratio (DCSR) of 1.18, and the closing is allowed to happen after 90 days of said DSCR.

“Our underwriting team excels in this extensive multifamily lending platform enables us to deliver the right financing for each client’s unique circumstances,” said Ms. Fischman. “We are committed to finding creative, innovative solutions for clients, and work tirelessly to ensure their experience with Greystone is nothing short of exceptional.”

“Our Greystone team was a true partner in this transaction, they understood what we needed and expertly navigated the lending landscape so that we could achieve our goals for this property,” said Ms. Cathy Lombardo, principal of the borrower. “Greystone is truly best-in-class among multifamily lenders.”

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