Manchac Lake Apartments
Lending - FHA - $30.6M
Greystone provided a $30,605,700 FHA-insured loan to Noland McKay Manchac Limited Partnership for construction of Manchac Lake Apartments, a 272-unit luxury multifamily property set to be built in the Ascension parish of Prairieville, LA. The loan was originated by Donny Rosenberg of Greystone.
The loan carries a low, fixed interest rate during the initial construction period followed by a 40-year term with straight amortization. The property will consist of 272 market-rate units to be built on a 23.3 acre site of land off of Airline Highway in Prairieville. The unit mix will include 132 one-bedroom units, 128 two-bedroom units, and 12 three-bedroom units contained in 12 garden-style buildings, and the property will include amenities such as a business center, clubhouse with fitness center, indoor sport court, beach approach pool and detached garage.
“We are thrilled to be a part of this exciting development, which will add much needed units to a market that has not seen large scale construction in almost a decade,” said Mordecai Rosenberg, head of Greystone’s FHA lending group. “Amesbury is a first rate developer, and we are proud to count them as part of the HUD and Greystone families.”
Mr. Rosenberg continued, “The 221(d)(4) product continues to be a truly compelling option for new multifamily construction. It is still, by far, the longest term construction loan product available in the market and enables the developer to lock in a 40-year fixed interest rate prior to construction instead of leaving them exposed to interest rate volatility over the next 2-3 years until the project is built and stabilized.”
“Greystone outdid itself again in working with us – particularly in underwriting such a complex deal,” said Robert Peek of Amesbury Companies. “As an established player in the multifamily development space, we were well aware of the challenges that developing in an area such as a wetland area and flood zone could present. But we were more than confident in Greystone’s ability to work with us and deliver an innovative financing solution that could accommodate these needs. We were able to lock in a low rate and long-term permanent financing option that will allow us to bring in-demand rental housing to the existing and potential residents of this area and protect against any market/interest rate movements for a very long time.”