Greystone Provides $25 Million Fannie Mae Loan to Refinance 384-Unit Multifamily Complex in Michigan
June 2, 2016
Greystone announced it provided a $25,058,000 Fannie Mae DUS® loan to refinance Hidden Lakes Apartments in Kentwood, MI. The transaction was originated by John Marr, a Managing Director at Greystone, on behalf of Alliance Management.
The Fannie Mae DUS loan carries a 12-year term with a 30-year amortizing structure; eight years yield maintenance and is interest-only for the first two years.
The Hidden Lakes loan structure allows Alliance Management to sell or refinance the property after the eighth year with a much smaller prepayment penalty, and have a longer term loan out to a final maturity in the 12th year. Hidden Lakes Apartments consists of 384 units of one- and two-bedroom apartments with amenities including a concierge service, cyber café, travel services and a modern clubhouse with a pool and spa.
“Appetite for Fannie Mae refinancing is incredibly strong, and with recent lending caps raised, we are thrilled to be able to execute this option for more borrowers as need demands,” said Joe Mosley, Executive Managing Director and head of Agency lending at Greystone. “This particular structure from Fannie Mae DUS affords the flexibility we knew this client needed in order to obtain a longer term loan with the option to prepay it early without a large fee.”
“Greystone continues to prove their commitment to us as a partner in assessing and developing the best-suited financing options for our business goals,” said Robert L. Foote, CEO, Alliance Management. “This refinance structure will allow us the cash out and monetize investor equity as well as fund our ongoing property upgrade program, which is a key differentiator for us in this competitive Grand Rapids market.”