Dealmaker: Greystone Provides $95M for Multifamily

Greystone, New York, provided $95.2 million for two multifamily properties, Watermark at East Cobb in Marietta, Ga. and The Choices at Holland Windsor in Virginia Beach, Va.

The firm provided a $62 million Freddie Mac loan–a permanent take-out on a bridge loan it provided last year–for Watermark at East Cobb, a 510-unit community. Greystone Managing Directors Keith Hires and Greg Krafcik closed the loan, which was arranged by Q10 iCAP Realty Advisors Director Mike Galla and Principal David Collie.

Greystone provided a $58 million bridge loan to recapitalize Watermark at East Cobb last year and guided borrower Cortland Partners, Atlanta, to a permanent exit with Freddie Mac’s Program Plus platform within 11 months. The new seven-year floating-rate loan included two years of interest-only payments followed by a 30-year amortization schedule for the remaining term. 

In Virginia Beach Greystone provided $33.2 million in FHA-insured financing for The Choices at Holland Windsor. The HUD 221d4 construction loan included lower mortgage insurance premiums because the project received energy-efficiency credit. 

Greystone Managing Director Donny Rosenberg originated the loan. He said that to qualify for the Green and Energy Efficiency Housing MIP reduction, a real estate project must produce a Statement of Energy Design Intent score of 75 or higher. The Choices at Holland Windsor produces an 89 SEDI energy score. 

“While the loan process for The Choices at Holland Windsor was well underway when HUD released the 2016 Multifamily Accelerated Processing Guide, the borrower was able to take advantage of the reduced MIP before closing,” said Phiet Nguyen, Deputy Chief FHA Underwriter and head of Greystone’s 221d4 underwriting team. “Recognizing the many benefits of building an environmentally friendly property, while HUD was still reviewing the final application, the developer and his consultants made a concerted effort to improve the project’s design and construction materials to meet the EarthCraft Multifamily standard.”