Greystone has provided a $900,000 Fannie Mae loan to refinance a multifamily property in Washington, DC, through the Equity in Action initiative launched by The Housing Association of Nonprofit Developers (HAND), the Washington Region’s premier member association advocating for affordable housing production and preservation. The financing was originated by Alicia Cotton-Doney, Senior Managing Director at Greystone, on behalf of The Ayesha M. Johnson Revocable Trust.
Greystone and HAND launched Equity in Action in 2021 to increase access to working capital for BIPOC real estate developers who face challenges to capital access, asset-based wealth generation, and economic mobility. HAND members gain direct access to advisory and financing solutions for affordable housing construction, refinancing, recapitalization and acquisition, including access to Greystone’s #1 ranked FHA lending platform.
Built in 1974 and acquired in 2005, 4905 Nash in the District of Columbia’s Deanwood neighborhood, is a mid-rise building consisting of 12 units. The non-recourse, fixed-rate $900,000 Fannie Mae loan carries a 10-year term and 30-year amortization period, as well as three years of interest-only payments and a 54% loan-to-value (LTV). In addition to refinancing, loan proceeds enable the borrower to continue to operate the property and monetize a portion of their equity.
“For decades, advocates have pointed to patterns of discrimination in the lending sector that have perpetuated barriers for BIPOC developers to access the capital they need to execute on their plans for creating affordable housing,” said Heather Raspberry, Executive Director, HAND. “Equity in Action is disrupting this system while ensuring BIPOC developers and their future residents are provided real opportunities to thrive.”
“We are thrilled to leverage our extensive multifamily lending platform and expertise to secure the right financing for our client,” said Ms. Cotton-Doney. “Greystone is deeply committed to making quality housing accessible to all communities. It’s our hope that other BIPOC commercial borrowers will draw on the resources available through the Equity in Action program to help address the housing crisis in Washington, DC.” “Thanks to Heather Raspberry and the impactful work of HAND, I began a journey with Greystone as my lending partner. Closing on this transaction is the culmination of a collaborative effort and focused intentions,” said Ms. Ayesha Johnson, principal of the borrower. “Alicia and the rest of the Greystone team were both supportive of and responsive to my specific needs and as a result, the current and future residents at this property will benefit for years to come. HAND and Greystone together have given us access to the knowledge and capital that enables us to maintain livable spaces as well as improve and beautify our community, one building at a time."