Greystone Arranges Construction Financing for Jacksonville-Area Project

The 188-unit community in Yulee, Fla., is being developed by Davis Heritage.
Mill Creek Preserve Apartments rendering. Image courtesy of Greystone

Greystone has secured $30 million in HUD construction financing on behalf of Davis Heritage, a Florida-based commercial real estate firm, to develop Mills Creek Preserve Apartments, a new 188-unit multifamily community in Yulee, Fla., part of the Jacksonville metro region.

The financing, originated by Christine Griffin, managing director in Greystone’s New York office, provides 85 percent of Mills Creek Preserve’s total costs. The HUD 221(d)(4) loan is structured as a non-recourse, fixed-rate construction loan that automatically converts to a 40-year, fully-amortizing permanent loan upon stabilization. The project is expected to be green-certified and energy efficient, making the borrower eligible for a reduced Mortgage Insurance Premium. Griffin noted in prepared remarks HUD construction financing is an excellent option for quality sponsors looking for long-term and low-rate financing at the outset of a project.

Stefan Davis, principal of Davis Heritage, credited Griffin and her team with bringing the project to life. Davis said in a prepared statement the development will bring much-needed multifamily housing to Jacksonville’s growing metro area.

Mills Creek Preserve Apartments will be a gated community with eight garden-style buildings and a mix of one-, two- and three bedroom layouts. Apartment features will include in-unit laundry and outdoor living space. Community amenities will include a clubhouse, business center, exercise facilities, swimming pool, outdoor recreation and a pet park.

Located in the desirable Nassau County school district, the property will be close to Interstate 95 and State Route 200 providing access to major restaurants, retailers, entertainment and small businesses. The community will also be near area attractions including the Jacksonville Zoo & Gardens, state parks and museums.

Jacksonville Activity

Numerous multifamily projects are under development in the Jacksonville area ranging from affordable to luxury properties. In July, The Vestcor Cos. received $19 million in bond financing to develop Sydney Trace Apartments, a 192-unit affordable community in Jacksonville. The Jacksonville Housing Finance Authority issued the bonds and provided a $1.5 million gap mortgage to the developer.

In May, Summit Contracting Group broke ground on Southbank Urban Residences, a 185-unit luxury development in Jacksonville overlooking St. Johns River that will feature studio, one-, two- and three bedroom floorplans. Summit is also working on six other multifamily projects in Jacksonville as a general contractor.