Greystone has provided a $22.6 million HUD-insured 223(f) loan to refinance a 96-unit multifamily property in Shelby Township, Michigan.
The financing was originated by Lisa Fischman from Greystone’s New York office, on behalf of Aria of Shelby LLC.
Aria of Shelby in Macomb County is a newly built townhouse-style rental community consisting of 96 two- and three-bedroom units spread across 18 detached, non-elevator buildings. The $22.6 million non-recourse, fixed-rate financing carries a 35-year term and amortization.
Additionally, the property secured Green Certification through NGBS. Going green gains Aria a heavily reduced Mortgage Insurance Premium, an MIP of 0.25% versus 0.60%. In addition to refinancing, loan proceeds enable the borrower to monetize a portion of the equity in the property.
Notably, the temporary certificate of occupancy was awarded for the property in May 2022 and the permanent takeout with HUD closing just four months later. The transaction took full advantage of the recent HUD amendment that allows an application for a HUD 223(f) refinance of a newly built multifamily asset to be submitted after 30 days of a debt-service coverage ratio (DCSR) of 1.18, and the closing is allowed to happen after 90 days of said DSCR.