Deutsche Bank Berkshire Closes $17.8M Construction/Permanent Financing for Garden-Style Apartments
- Mar 03, 2010
Lebanon, Tenn.– Deutsche Bank Berkshire Mortgage (DBBM) arranged a $17.8 million Federal Housing Administration (FHA)-insured loan for the construction of Callis Hills Apartments, a proposed 210-unit garden-style multifamily community in Lebanon, Tenn.
Financing was executed under HUD’s Section 221(d)(4) Mortgage Insurance Program, which provides non-recourse construction and permanent financing. The financing was structured to be a fully amortized loan based on a 40-year fixed-rate note, following the interest-only construction period.
The developer is a single asset-entity with whom DBBM has successfully closed business on two prior multifamily developments. DBBM closed 10 FHA construction loans in 2009 with additional closings slotted for Q1 2010.
“FHA continues to be a great source of capital for construction financing,” said Steve Wendel, co-head of Deutsche Bank Berkshire Mortgage. “Despite a difficult lending environment, we were able to execute a smooth and successful transaction.”
The property will consist of 11 residential buildings along with a community building. Amenities will include a swimming pool with sundeck, fitness center, tennis court and playground. There will also be barbecue grills located at each building and 42 garages.