Greystone provided a $33.2 million HUD-insured construction loan for the development of Litchford 315, a new 240-unit multifamily community in Raleigh, North Carolina. The transaction was originated by Managing Director Eric Rosenstock and Vice President Jason Stein in Greystone’s New York office on behalf of Dewitt Carolinas.
The loan provides 85% loan-to-project costs, and carries a low, fixed interest rate during the construction period, followed by a 40-year term with straight amortization. HUD’s 221(d)(4) loan product enables construction or substantial rehabilitation of multifamily projects with long-term, fixed, and low-rate financing. The property will be built to comply with HUD’s ENERGY STAR requirement of a 75 score or higher to achieve a Green Mortgage Insurance Premium (MIP) reduction.
Litchford 315 will offer residents spacious floor plans and Class A finishes with community amenities, including a resort-style pool and clubhouse. The property is conveniently located near an abundance of retail options and easy access to Interstate 540. The project is expected to be completed in Q2 2021. The addition of Litchford 315 will bring distinctive, inspired living to North Raleigh.
“In today’s evolving financing environment, driven from uncertainty due to the novel Coronavirus, many banks, balance sheet lenders, and construction lenders are not quoting deals during the pandemic. Yet HUD is lending at a record pace and we are thrilled to be a steady and reliable lender for HUD-insured mortgages,” said Mr. Rosenstock. “As a leading HUD lender for multifamily mortgages, we pride ourselves on both product and market knowledge for quality sponsors nationwide, and we value those sponsors such as Dewitt put their trust in us for certainty of execution.”
“We are thankful for Eric Rosenstock and Jason Stein’s guidance on securing HUD-insured financing for our Litchford 315 project and serving as a steady hand throughout the entire process,” said Todd Saieed, CEO of Dewitt Carolinas. “With this long-term, fixed, low rate loan, we can plan for the long-term success of this property and the value it will provide to residents for many years to come.”