Greystone announced it provided a $36.4 million HUD-insured construction loan under the HUD 221(d)(4) program to Grubb Properties LLC for the development of Link Apartments 4th Street, a new 224-unit multifamily apartment community located at 501 W. 4th Street in Winston-Salem, NC. The transaction was originated by Paul Fried of Greystone Capital Advisors through Greystone Servicing Company LLC.
The FHA-insured financing for the property will fund 85% of total project costs and is structured as a non-recourse, fixed-rate construction loan that automatically converts to a 40-year, fully-amortizing permanent loan upon stabilization. With this green-certified and energy efficient project, the borrower also qualifies for reduced Mortgage Insurance Premium (MIP).
Link Apartments 4th Street is located in the heart of downtown on 4th Street, Winston-Salem’s main thoroughfare for commercial activity, providing convenient access to the City’s numerous employment centers and cultural institutions, including the recently developed Innovation Quarter, a 145-acre urban innovation district comprising more than 1.8 million square feet of office, lab and education space. Once complete, Link Apartments 4th Street will deliver 224-units with a mix of well-appointed and highly-amenitized junior, 1-, and 2-bedroom apartments into this growing submarket.
“Link Apartments 4th Street marks Grubb Properties’ growing presence in the Winston-Salem market and speaks to the company’s commitment to developing its unique Link Apartments® brand in growing urban markets,” said Mr. Fried. “Grubb Properties is an important client and borrower of Greystone’s, and we appreciate the opportunity to have worked with them, again, as they continue to build out their portfolio.”
“Grubb Properties is happy to have again worked with the Greystone team and to have executed this HUD loan for the Link Apartments 4th Street project,” said Henry Lomax, Chief Financial Officer of Grubb Properties. “Greystone understands Grubb Properties’ vision for developing a portfolio of innovative, high quality, and efficient residential properties in growing cities like Winston-Salem to help fill the housing gap. The Greystone organization got behind the effort and shepherded us, from start to close, through the HUD process.”