Greystone announced it has provided a $70.4 million Fannie Mae affordable housing loan for an apartment complex in Chicago, IL. The permanent financing for Morningside North Apartments, which helps fulfill Fannie Mae’s Duty to Serve mandate, will provide long-term affordable housing for hundreds of residents in the Midwest.
The 256-unit community, under a 20-year Section 8 HAP Contract, reserves 100% of its units for Very-Low Income Families (60% of Area Median Income or less). The term of the new $70,400,000 Fannie Mae loan is 17 years with 15-year yield maintenance. Financed under the Fannie Mae MBS as Tax-Exempt Bond (M.TEB) program, the borrower received tax-exempt financing from the Illinois Housing Development Authority (IHDA) in the form of long-term bonds. Additionally, Aegon is providing tax credit equity in the amount of $30,511,183 that will be utilized towards planned renovations. With newly-issued 4% tax credits, the transaction qualifies for 90% LTV, as well as the Fannie Mae Green Rewards Program, with the intention to reduce water usage by 30% and energy use by greater than 15%.
Built in 1981, Morningside North Apartments is an 18-story high-rise community made up primarily of one-bedroom units with an on-site office, library, club room, community room, storage, laundry room, controlled access, elevators, and social activities for residents. The property is located in the Gold Coast submarket of Chicago, and has a vacancy rate of under 2%.
“We thank Fannie Mae for their partnership in financing this critical asset in the Chicago market, helping to preserve quality housing for hundreds of residents,” said Jeff Englund, head of the affordable housing lending group at Greystone.
“Fannie Mae is proud to partner with Greystone on the financing of the Morningside North Apartments,” said Bob Simpson, vice president of affordable and green financing for Fannie Mae. “Working with our DUS® partners to provide innovative financing options through the MBS as Tax-Exempt Bond (M.TEB) program is one way that we are working to preserve affordable housing for those who need it most.”