Greystone has provided a $49 million construction loan under the HUD 221(d)(4) program for the development of Katy Apartments, a new multifamily community located in Katy, Texas. The transaction was originated by Shana Daby, managing director at Greystone on behalf of AMCAL Equities, LLC.
The $49 million FHA financing will fund 85% of the total project costs and is structured as a non-recourse, fixed-rate construction loan that automatically converts to a 40-year, fully-amortizing permanent loan upon stabilization. With this green-certified and energy efficient project, the borrower also qualifies for reduced Mortgage Insurance Premium (MIP).
Upon completion, Katy Apartments will consist of 324 market-rate and income-restricted rental units spanning 12 garden-style buildings. Each of the one-, two-, and three-bedroom units will feature modern appliances, in-unit laundry facilities, and private outdoor living space. Residents will also enjoy access to the community’s clubhouse and fitness facility, business center, media room, cabana, and swimming pool. The property is located in the desirable west Houston metro suburb of Katy, one of the region’s most sought-after school districts. Its proximity to Interstate 10 provides easy access to the area’s major retailers, restaurants, entertainment and employers, and to downtown Houston.
“We are thrilled to team up with AMCAL again to secure the long-term financing for a project that will bring much needed market-rate and workforce housing to the Houston metro region,” said Ms. Daby. “I am grateful that AMCAL continues to trust our team’s ability to execute on solutions that make sense for each of their transactions, at every stage of a project’s lifecycle.”
“We are delighted that Shana and the rest of the Greystone team worked tirelessly to deliver the best terms for us on this project and others – Greystone’s caliber of service and attention to detail is simply unmatched in this industry,” said Stephen Clarke, Vice President, Market Rate and Student Housing for AMCAL Equities, LLC.