RST Obtains $30M to Develop Suburban Raleigh Apartments
- Dec 13, 2016
Apex, N.C.—Maryland-based RST Development has obtained $30.9 million in financing to develop The Flats at 540, a multifamily development in Apex, N.C. The project will include 212 residential units in three four-story buildings, as well as 457 surface parking spaces and 72 detached-garage parking spaces.
Common amenities will include a clubhouse with adjacent pool; fitness center; business center; deck with cabana and outdoor kitchen; car care facility and dog park. Apex, a suburb of Raleigh, currently has a multifamily vacancy rate of 3.7 percent. The town was ranked the #1 Best Place to Live in America by Money Magazine in August 2015.
The development is slated to open in the fall of 2017. RST Development is the development arm for Hercules Real Estate Services of Virginia Beach, Va. Hercules Living, its sister company, owns and manages more than 8,000 apartment units in seven states. It will manage the new property in Apex upon completion.
The loan was originated by Greystone managing director Donny Rosenberg. The financing utilizes HUD’s 2016 MAP Guide standards for a lower Mortgage Insurance Premium (MIP) threshold based on Green and Energy Efficiency Multifamily Housing requirements.
To qualify for the Green and Energy Efficiency Housing MIP reduction, a real estate project must produce a Statement of Energy Design Intent (SEDI) score of 75 or higher. The Flats at 540 has a SEDI energy score of 82.