WASHINGTON, DC - Fannie Mae announced the first loan to close with its Multifamily Green Building Certification Pricing Break. The Station House, which was acquired in April by Prudential Real Estate Investors on behalf of an institutional client, is a 50-unit, mid-rise multifamily rental property in Maplewood, N.J., that has a U.S. Green Building Council (USGBC) Leadership in Energy and Environmental Design (LEED) certification.
Wells Fargo originated the $10,175,000 million loan. As a result of the reduction in its all-in interest rate by 10 basis points (.10 percent), PREI will save more than $101,000 in interest payments over the life of the loan. The loan is securitized as "Green Mortgage-Backed Security," indicating to fixed-income investors that the bond supports reductions in impacts to the natural environment.
"This transaction reinforces Fannie Mae's commitment to quality, affordable and sustainable rental housing in every market, every day," said Bob Simpson, Vice President of Fannie Mae's Multifamily Affordable, Green and Small Loans business. "Fannie Mae is leading the way in providing financing for green properties that are reducing energy and water use, lowering utility costs for owners and tenants, and preserving long term property value."
The property is an adaptive re-use of a formerly environmentally contaminated lot that previously housed the historic Maplewood Police Station. The Station House was awarded points in efficient water management, green power and use of recycled materials resulting in the LEED New Construction Certification. Additionally, The Station House was strategically developed adjacent to New Jersey Transit's Maplewood Station, offering an approximately 30-minute, direct access train ride to New York Penn Station.
"The transit-oriented location of The Station House, which is also within walking distance to an array of local amenities in downtown Maplewood, made this high-quality, LEED Certified property an attractive addition to our client's portfolio," said Len Kaplan, Managing Director at PREI. "PREI is committed to sustainable real estate investing and management, and practicing good global citizenship in the communities it serves. We are therefore pleased to be able to take advantage of Fannie Mae's Green Building Certification Pricing Break for the benefit of our client."
In February, Fannie Mae announced that it would offer a Green Building Certification Pricing Break for multifamily properties that have one of nine eligible green building certifications, including USGBC's LEED certification, U.S. Environmental Protection Agency's ENERGY STAR® for multifamily certification, and Home Innovation's National Green Building Standard.
"We look forward to seeing more property owners pursuing green loans and green building certifications," said Vince Toye, Executive Vice President, Head of GSE Production at Wells Fargo Multifamily Capital. "Fannie Mae's pricing reduction is a great incentive."
For more information on Fannie Mae's Multifamily Green Initiative, please visit www.fanniemaegreeninitiative.com