Grubb Properties Secures Loan for North Carolina Development
- Feb 27, 2020
Grubb Properties LLC is growing both its Link Apartments brand and its presence in the Winston-Salem, N.C., market with the development of Link Apartments 4th Street, a 224-unit multifamily apartment community being constructed in the city’s downtown. The development, which will feature well-appointed and highly-amenitized junior, one- and two-bedroom apartments, is expected to be completed by June 2022.
The project at 501 W. 4th St. is moving forward with the help of a $36.4 million HUD-insured construction loan under the HUD 221(d)(4) program originated by Paul Fried of Greystone Capital Advisors through Greystone Servicing Co. LLC. The FHA-insured financing will fund 85 percent of the total project costs and is structured as a non-recourse, fixed-rate construction loan that automatically converts to a 40-year, fully-amortizing permanent loan upon stabilization. With a green-certified and energy-efficient project, Grubb Properties also qualifies for reduced Mortgage Insurance Premium (MIP).
Henry Lomax, Grubb Properties CFO, said in a prepared statement Greystone, which has worked with Grubb Properties in the past, understands the firm’s vision for developing an urban portfolio in growing cities like Winston-Salem to fill the housing gap.
Link Apartments 4th Street is located in the heart of Winston-Salem’s main downtown thoroughfare near commercial activity and cultural institutions in the growing submarket. It has convenient access to the recently developed Innovation Quarter, a 145-acre urban innovation district comprising more than 1.8 million square feet of office, lab and education space.
Grubb Properties developed and operates two multifamily properties in Winston-Salem—Link Apartments @ Innovation Quarter and Link Apartments @ Brookstown. In August, Yardi Matrix cited Winston-Salem as one of the nation’s top multifamily market performers through the first half of 2019 with rent growth of 4.8 percent.
Recent Grubb Properties Deals
In March, Greystone Bassuk, an affiliate of Greystone, worked on behalf of Grubb Properties to secure a $36.5 million construction-to-permanent loan to help finance development of Link Apartments Grant Park, a 246-unit luxury redevelopment project in Atlanta.
In October, Grubb Properties acquired The George and The Leonard, two Atlanta apartment communities totaling 217 units from Urban Realty Partners and Case Pomeroy Properties for $48.2 million.