Greystone Provides $70.8 Million Fannie Mae Loan to Refinance New Construction in San Jose, CA
July 9, 2018
Category: Fannie Mae, Multifamily
Greystone announced it has provided a $70,848,000 Fannie Mae DUS loan to refinance the newly-constructed 251 Brandon Street apartments in San Jose, CA. Greystone’s Northern California Advisory team – Simon Herrmann, Todd Vitzthum, and Cody Field – worked closely with the borrower to ensure a seamless process and timely execution.
The $70.8 million Fannie Mae loan carries a 10-year fixed rate, 8 years of interest-only, and a 30-year amortization period. With impending and unknown interest rate increases, locking in a rate and closing the transaction quickly was of utmost importance to the borrower, who had owned the land for years prior to construction, and recently completed the ambitious 271-unit project.
Located in a tech hub serving as home base to many employees of Facebook, Google, and Apple, 251 Brandon offers residents an attractive amenities package including outdoor entertaining space, business resources and event spaces. The mid-rise building quickly became fully stabilized after completion, enabling Greystone to execute a swift and permanent exit with Fannie Mae financing.
“The fundamentals for the San Jose rental market are certainly strong, with a bevy of job opportunities and many potential home buyers being priced out of the market. The completion of 251 Brandon is a welcome addition to the local rental market, and serves as an example of quality housing that is very much needed in this market,” Mr. Field said.
This was the borrowers’ first Fannie Mae loan and first deal with Greystone, who added, “Cody and his colleagues provided valuable advice throughout the process and helped us procure the loan product that best suited our needs.”