Dallas-Area Property Receives $47M Construction Loan
The 308-unit Tower Bay Lofts will be built using Federal Housing Administration financing. The project obtained a "residential" wage decision, resulting in significant savings for the developer.
Berkeley Point Capital has structured $47.2 million in FHA 221(d)(4) financing for the construction of 308-unit Tower Bay Lofts in Lewisville, Texas. The Class A, market-rate community will include a five-story parking structure with two additional below-grade levels.
Director Tom White, who led the Berkeley Point team, arranged the loan through the Federal Housing Administration’s New Construction program, which provides non-recourse, fixed-rate construction to permanent financing. The loan has a 40-year, fully amortizing permanent term. The loan’s rate lock was set at 3.8 percent.
Completion in 2020
The property will be located at 3000 N. Stemmons Freeway, adjacent to the Lewisville marina and Interstate 35E. The site is also next to Tower Bay Park and the A-Train Lewisville Station, while downtown Dallas is a 35-minute drive away.
“Berkeley Point achieved a ‘residential’ wage decision for the multifamily building, despite having an exterior facade in excess of four stories,” White told Multi-Housing News. “The fifth story space represents fourth floor loft bedrooms, and, therefore, does not count as a fifth floor for purposes of Davis Bacon. Building in excess of four stories requires ‘commercial building’ wage decision, which demands higher wage rates than a ‘residential’ wage decision. This resulted in huge savings for the developer. The project is due to be completed within 24 months.”
Last month, Berkeley point provided $18.6 million in refinancing for a 312-unit community in Oakland Park, Fla., north of Fort Lauderdale. Fannie Mae furnished the fixed-rate loan.
Image courtesy of Berkeley Point Capital