Dealmaker: Pillar Originates $41M in Freddie Mac, HUD Funds

Pillar, New York, originated an $8.5 million fixed-rate, 10-year Freddie Mac loan with a 30-year amortization schedule for Willow Ponds Apartments in Lansing, Mich.

Pillar Managing Director David Wilkins originated the financing for Maplegrove Property Management of East Lansing and Grand Rapids, Mich. The transaction closed in April.

“This is the fourth loan we have originated for Maplegrove and the second Freddie Mac loan,” Wilkins said. “We also have originated Fannie Mae Affordable and HUD loans for them.” He noted that Maplegrove locked the index loan with Freddie’s conventional loan program five days after application. “Pillar is currently processing the sister property loan origination under the same Freddie Mac program for Maplegrove,” he said.

Wilkins said the 1998-vintage property includes 136 units fully occupied at market-rate rents.

In Glen Cove, N.Y., Pillar originated a $32.5 million fixed-rate, fully amortizing 40-year HUD 232 loan for The Regency at Glen Cove, an assisted living and memory care facility.

Joshua Hausfeld, Managing Director with Pillar’s Healthcare Finance team, originated the loan for non-profit owner National Healthplex Inc.

“This was one of the more complicated transactions under the 232 program as it involved a ground lease of the project land and improvements, a payment-in-lieu-of-taxes agreement and tax-exempt bonds issued by the Glen Cove Industrial Development Agency,” Hausfeld said. “In addition, the transaction has to ensure compliance with all applicable HUD and New York State building lien laws, which added another unique layer of intricacy.”

Hausfeld said the financing is technically a new construction loan, but National Healthplex will utilize the proceeds to convert a portion of the building to a memory care wing, “adding 24 units to the back of the building on the third and fourth floors.” Once completed, The Regency will have 132 units, he said.