Fractured Condo Property in Raleigh Wins Refi

Raleigh, N.C.—Greystone has overseen the $7.5 million Fannie Mae Delegated Underwriting and Servicing (DUS) refinancing of 134 units in an apartment community in Raleigh, N.C. The loan, provided to Forest Edge Townhomes LLC, was originated by Dan Sacks and Elie Gabay.

Forest Edge Townhomes is a fractured condominium property in which the borrower owns 134 of the 138 units. The 10-year fixed rate loan for the refinance includes a 30-year amortization.

“The loan structure of this deal represents creative financing within clients’ time constraints – this one being closed in less than a month,” said Joe Mosley, executive managing director and head of agency lending at Greystone. Also, he pointed out, all of the units in this property have rents affordable to those earning 80 percent or less of the area median income, which helps meet Fannie Mae’s goal of providing workforce housing.

According to Colliers International, the Raleigh-Durham multifamily market remained fundamentally solid at the close of the first quarter (the most recent report available). While absorption rates have been consistent and rents continue to grow, the market’s supply and demand have also remained steady.

Average asking rents were $995 per unit, providing a 4.6 percent growth rate per year, with the average rate was $1.04 per square foot, the company reported. All together in Raliegh-Durham at the end of Q1, about 7,300 multifamily units were under construction, with total occupancy at 94.7 percent.