BWE Arranges $26.6MM HUD 221(D)(4) New Construction Loan For Market Rate Multifamily Property In Casa Grande, Arizona

(MENAFN- PR Newswire) Lilla Abegg-Swanson, Senior Vice President, and James Swanson, Executive Vice President, from BWE's Scottsdale office, originated the financing through the U.S. Department of housing and Urban Development's 221(d)(4) mortgage insurance program on behalf of its client. The HUD-insured financing provides for a combined construction and permanent loan for market rate multifamily projects. This 40-year fully amortized loan is non-recourse and fully assumable.

According to Andrew Edelstein, Senior FHA Underwriter, "the 221(d)(4) program is unique in that it not only provides some of the highest leverage (now at up to 87% loan-to-cost for market rate transactions, but it also serves as a combination construction and permanent loan, with the construction portion being interest-only before converting to a 40-year amortization period, which is longer than just about any alternative financing source."

Property Details

The Lofts at G Diamond Ranch is a 120-unit apartment development in the northern portion of Casa Grande, Arizona. It is part of a Planned Area Development (PAD) known as G-Diamond Ranch that contains a multitude of complementary uses and will serve as the multifamily component. Casa Grande benefits from its location near the halfway mark between the two largest cities in Arizona (Phoenix and Tucson) and its strategic geographic location has attracted massive development and investment from a number of large corporations. As a result, The Lofts at G Diamond Ranch will provide much needed, high quality rental housing in the city.

Improvements will feature 20 two-story, garden style buildings with a separate amenity building located close to the entrance. Each L-shaped residential structure contains six apartments split between the first and second floors. The proposed unit mix is evenly split between two- and three-bedroom units, and the property will offer some of the largest units in the market.

Amenities include tastefully landscaped common areas with shaded courtyards, a clubhouse with fitness center and children's play center, and a swimming pool and spa with relaxation areas. Units will be well-appointed with stainless steel Energy Star appliances, ceiling fans, granite counters with breakfast islands, in-unit washer/dryer, LVT flooring, floor to ceiling cabinets for additional storage space, and closet organizer systems in the units. All units will have shaded, private patios or balconies.

BWE's experienced FHA team provided advisement to ensure the property would qualify for the "Green" reduced MIP as it will be designed and constructed to Energy Star Multifamily standards.

About BWE

BWE is a national, full-service commercial and multifamily mortgage banking company committed to elevating real estate financing. Putting clients' goals first, our experienced and trusted team offer comprehensive capital solutions with unparalleled local market insights across our 40+ offices and national servicing platform.

For further information:

Contact
Jim Swanson
Executive Vice President – Scottsdale
602-625-5024
[email protected]

Lilla Abegg-Swanson
Senior Vice President – Scottsdale
602-317-8798
[email protected]

SOURCE BWE

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