Texas Community Lands $20M Financing

Greystone provided the borrower a Fannie Mae Green Rewards senior mortgage loan and a smaller mezzanine loan for the acquisition of a rental property near Fort Worth.

The property in Haltom City, Texas. Image courtesy of Greystone

Greystone has provided two Fannie Mae loans totaling $19.5 million to a borrower who acquired a 216-unit multifamily property in Haltom City, Texas. A suburb of Fort Worth, Texas, Haltom City is located in the Dallas-Fort Worth Metroplex in Tarrant County.

Greystone provided a Fannie Mae Delegated Underwriting and Servicing (DUS) Green Rewards loan of $18.2 million to the borrower as well as a $1.3 million Delegated Lender Affiliate (DLA) mezzanine loan to supplement the first mortgage. The Green Rewards program is estimated to reduce the property’s utility usage by 30 percent.

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Both loans were non-recourse and funded simultaneously. They each carry 12-year terms with different fixed-rate interest rates. With a minimum of $1 million, a Fannie Mae DLA mezzanine loan must accompany a senior mortgage of at least $10 million. It is secured by a 100 percent pledge of the equity interests of the borrower. The mezzanine platform was described as a complementary option to assist multifamily property investors in completing the capital stack on acquisitions and refinancing, according to Anthony Alicea, head of production for Greystone’s portfolio lending group.

Greystone declined to identify the property or the borrower but a spokesperson did confirm the firm has worked with the borrower in the past.

Also in Texas, in July Greystone provided nearly $9 million in a Fannie Mae Green Rewards loan to refinance a multifamily property in Georgetown, Texas. The loan for the owner of The Rail at Georgetown had a 10-year term with three years of interest-only payments.

More Summer Deals

In August, Greystone provided $13.2 million in Freddie Mac financing to Cedar Grove Capital towards the $17.2 million acquisition of 86 North Apartments, a 144-unit community in Chapel Hill, N.C., from a private investor, according to Yardi Matrix.

A month earlier, Greystone Servicing Corp. originated a $40 million Fannie Mae loan for Block Real Estate Services and Thackeray Partners to purchase Barrington Park Townhouses from Sillman Enterprises, per Yardi Matrix. The 80-building property in Lenexa, Kan., has 408 units.

Greystone Planning Purchase

Last week, Greystone announced it has agreed to acquire an affordable and market-rate multifamily financing platform from Burlington Capital for $80 million in cash. The deal, expected to close during this quarter, calls for Greystone to buy all the interests in America First Capital Associates Limited Partnership Two from Burlington and one of its subsidiaries. The partnership has approximately $1 billion of total assets focusing on the purchase, holding and sale of mortgage revenue bonds and other investments providing construction and/or permanent financing for multifamily properties.

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