Greystone Provides $72.7 Million in HUD Financing for Two Affordable New York City Properties
August 22, 2012
Greystone Funding Corporation (Greystone), a leading national provider of multifamily and commercial mortgage loans, today announced that it has originated $72.7 million in financing for two multifamily housing projects in New York City. Greystone Managing Directors Mordecai Rosenberg, Donny Rosenberg and Traverse Fournier lead the effort to close the transactions.
Greystone’s extensive experience with the U.S. Department of Housing and Urban Development (HUD) and FHA programs enabled the team to successfully close the financings at highly favorable interest rates. The first property, a 224-unit building, received approximately $40 million of loan proceeds including a meaningful amount of cash-out to the owner. The second, a 152-unit building, generated $32.7 million, also with cash-out to the sponsor.
“HUD financing today represents a once in a lifetime opportunity to lock in 35-year, self- amortizing financing at rates below 3%. More and more property owners are starting to recognize the distinct value that HUD-insured financing can provide to their portfolio – even in New York City, where owners have long relied on 5-10 year bank financing,” said Mordecai Rosenberg. “Today, HUD financing provides not only the lowest available interest rate and, often, the highest level of loan proceeds, but also represents the most direct way to ensure the continued success of the project in a rising interest rate environment. It’s the optimal antidote for anyone who has lost sleep in the past over looming loan maturities.”
The FHA group is led by Betsy Vartanian, Executive Vice President of Greystone and consists of 75 individuals located in 8 offices throughout the United States.