Greystone has provided a $49 million, HUD-insured construction loan for the development of Katy Apartments, a 324-unit community in the Houston suburb of Katy, Texas. Managing Director Shana Daby secured the financing on behalf of AMCAL Equities.
The FHA financing will cover 85 percent of the total anticipated project costs at Katy. The mortgage is structured as a non-recourse, fixed-rate loan that automatically converts to a 40-year, fully amortizing loan upon stabilization. The borrower qualified for a reduced Mortgage Insurance Premium due to the development’s sustainable design.
The property will have 12 garden-style buildings with a mix of one-, two- and three-bedroom market-rate and affordable units. Planned amenities include a clubhouse, fitness facility, media room, business center and swimming pool.
The site, located just north of the intersection of Colonial Parkway and Katy Fort Bend Road, is 1 mile from Interstate 10 and within 30 miles of downtown Houston. The development is less than 2 miles from the University of Houston-Victoria’s newly opened Katy campus and Simon’s 1.2 million-square-foot Katy Mills shopping mall.
Last month, Greystone provided a $54.4 million loan alongside a number of other financing partners for the development of a 172-unit affordable housing project in Bloomington, Minn. Two-thirds of the community’s apartments will be reserved for renters earning less than 60 percent of the area median income.