Greystone has provided a $70.4 million Fannie Mae affordable housing loan for an apartment complex in Chicago. The permanent financing for Morningside North Apartments, 170 W. Oak Street, helps fulfill Fannie Mae’s duty to serve mandate and will provide long-term affordable housing for hundreds of residents.
The 256-unit community, under a 20-year Section 8 HAP contract, reserves 100 percent of its units for very-low income families (60 percent of area median income or less). The term of the new $70,400,000 Fannie Mae loan is 17 years with 15-year yield maintenance. Financed under the Fannie Mae MBS as tax-exempt bond (M.TEB) program, the borrower received tax-exempt financing from the Illinois Housing Development Authority (IHDA) in the form of long-term bonds.
Additionally, Aegon is providing tax credit equity in the amount of $30,511,183 that will be utilized towards planned renovations. With newly-issued 4 percent tax credits, the transaction qualifies for 90 percent LTV, as well as the Fannie Mae green rewards program, with the intention to reduce water usage by 30 percent and energy use by more than 15 percent.
“We thank Fannie Mae for their partnership in financing this critical asset in the Chicago market, helping to preserve quality housing for hundreds of residents,” said Jeff Englund, head of the affordable housing lending group at Greystone.
Built in 1981, Morningside North Apartments is an 18-story high-rise community made up primarily of one-bedroom units with an on-site office, library, club room, community room, storage, laundry room, controlled access, elevators and social activities for residents. The property is located on the city’s near north side and has a vacancy rate of under 2 percent.
