Greystone Provides $51.3 Million in HUD-Insured Financing for Multifamily Property in California
Greystone has provided a $51.3 million HUD-insured loan to refinance a 206-unit multifamily property in Hayward, CA. The transaction was originated by Shana Daby, managing director at Greystone on behalf of AMCAL Equities, LLC.
The non-recourse HUD 223 (a)(7) loan refinances the property for a 35-year term and amortization, resulting in a significant reduction in annual debt service payments. By achieving a high energy performance score, the property also qualifies for a reduction in Mortgage Insurance Premium for green standards, from 65 to 25 basis points annually.
Constructed in 2017, Cadence Apartments is a luxury apartment community situated on 2.9 acres near Dixon Street. Located directly across from the South Hayward BART station, residents have easy access to San Jose, The Peninsula or Oakland. Cadence is close to downtown Hayward and California State University, East Bay (CSUEB) is only three miles away. Amenities at Cadence Apartments include a state-of-the-art fitness center with separate yoga room, a resident lounge, pool and spa deck, clubhouse, business center, pet spa, self-service bike parking and repair, a community room and concierge services.
“At first it seemed counterintuitive that an (a)(7) would make sense given the prepayment penalty on the existing loan, but the combination of the dramatic decrease in interest rates and the lower Mortgage Insurance Premium for green announced by HUD since the initial closing, resulted in significant savings,” Ms. Daby continued. “AMCAL is a premier sponsor and I’m delighted to have been a part of this transaction, first as MAP underwriter for the original 221(d)(4) construction financing, and now as originator for the (a)(7) refinance. I’m grateful for the trust they continue to have in me and Greystone.”
“Shana has been a respected industry contact of AMCAL’s for many years, and we are thrilled to work with her and Greystone to take advantage of this window of opportunity for achieving green MIP and lowering overall debt service,” said Stephen Clarke, Vice President, Market Rate and Student Housing, AMCAL Equities, LLC.