NEW YORK, NY - Greystone, a leading commercial real estate lending, investment, and advisory company, has provided a $16 million HUD-insured construction loan for the development of White Oak Grove Apartments, a new 113-unit multifamily community in Asheville, North Carolina. The transaction was originated by Andrew Ellis in Greystone’s Rockville, MD office, on behalf of White Oak Grove Associates.
The loan provides 85 percent of the project costs, and carries a low, fixed interest rate during the construction period, followed by a 40-year term with straight amortization. HUD’s 221(d)(4) loan product enables construction or substantial rehabilitation of multifamily projects with long-term, fixed, low-rate financing. The property also will be built to comply with HUD’s ENERGY STAR requirement of a 75 score or higher to achieve a Green Mortgage Insurance Premium (MIP) reduction.
White Oak Grove Apartments will be located at the intersection of Hazel Mill Road and Clayton Avenue in West Asheville. The market-rate apartment community will consist of 10 garden-style walk-up buildings, with 12 one-bedroom units in two different layouts averaging 743 square feet and 101 two-bedroom units in seven different styles averaging 1,138 square feet. Each well-appointed unit will include granite countertops, in-unit washer/dryers, large walk-in closets, energy-efficient stainless steel appliances, and other upscale finishes. Community amenities will include onsite parking, a fitness room, community room and business center, a dog park, picnic areas and green space throughout. The property’s location offers easy access to shops, community services, restaurants and nightlife, and is near major roadways, including U.S. Route 74 and I-40, and the Asheville Regional Airport. The project is planned for completion in 2020.
“We are thrilled to help bring this new community to life in Asheville,” said Mr. Ellis. “Our team was able to put together the construction financing quickly so that our client can help meet the multifamily housing demands of this growing city. We are thrilled to help such a quality sponsor on this effort.”
“Greystone’s precise execution and the way the team led us through each phase of this transaction was remarkable – they are truly the best in the business,” said Harry Pilos of White Grove Oak Associates. “We are excited that we can build this community from the ground up and look forward to working with Greystone on future investments.”