Dealmaker: Greystone Provides $31M FHA Loan for Apartment Construction

Greystone, New York, provided a $30.6 million FHA-insured loan to Noland McKay Manchac Limited Partnership to construct Manchac Lake Apartments in Prairieville, La.

Greystone Managing Director Donny Rosenberg originated the loan. He said the section 221(d)(4) loan carries a low fixed interest rate during the construction period followed by a 40-year term with straight amortization. The property will consist of 272 market-rate units on 23.3 acres in a market that has seen little large-scale construction over the last decade, he noted.

Mordecai Rosenberg, head of Greystone’s FHA lending group, said FHA’s 221(d)(4) product remains a 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 two to three years until the project is built and stabilized,” he said.

Greystone also closed its first Freddie Mac Fast-Track Early Rate Lock loan by originating $9.5 million to refinance Rego Park Gardens, a cooperative apartment building in Queens, N.Y. Greystone Managing Director Andrew Ellis and Total Real Estate Finance Solutions Founder Peter Grazide arranged the loan, which includes a 15-year term with a 30-year amortization.

Billy Posey, CEO of Greystone’s Freddie Mac and Fannie Mae lending group, said many borrowers in the New York City area where cooperatives are popular benefit from this type of financing. Rego Park Gardens consists of 527 units in Queens’ Elmhurst neighborhood near the Queens Center Mall.