Owners of three separate multifamily housing properties turned to PNC MultiFamily Capital, a division of PNC Real Estate Finance, for assistance in financing new construction housing as well as refinancing existing housing.
Originators at PNC MultiFamily Capital secured Federal and Housing Administration (FHA)-insured loans for all three properties, including:
- Beechwood Apartments, Athens, GA - A FHA-insured Sec. 221(d)
multifamily loan for $12,221,600 was secured on behalf of S.P.R.
Beechwood Associates, C.P., owner, to finance this new construction.
The garden-style building will add 182 new multifamily units at market
rate to this residential area. The loan was secured at 5.35 percent
interest over 40 years. Developer Easlan Capital of Atlanta and
architects from Miller Player Associates have been contracted for this
new project. Construction is scheduled to begin in June.
"This is an excellent example of how the HUD mortgage insurance program assists Georgia communities to expand the much-needed supply of apartments in an area that traditionally lacks sufficient rental housing," said Charles Ervin, regional vice president, PNC MultiFamily Capital, Atlanta, Ga.
Continuing a trend of property owners to leverage the current low interest rate environment, PNC MultiFamily Capital also secured FHA-insured refinancing for two additional multifamily properties. By substantially reducing the loan interest rates over the lifetime of a loan, owners can decrease their annual debt service, increase the asset value and provide funds for property improvements.
The refinanced properties include:
- Greentree Village Apartments, Beaumont, TX - Greentree Investments,
L.T.C., L.P., owner, refinanced $5,517,400 of an existing Federal
National Mortgage Association (Fannie Mae) loan for this 25 year-old,
250-unit multifamily property. The new FHA-insured Sec. 223(f) loan,
amortized over 35 years, lowered the interest rate from 7.0 percent to
5.70 percent. FHA's Sec. 223f mortgage insurance program allowed the
units to refinance at a reduced interest, preserving the rental housing
stock in the Beaumont area.
- Camelot Village Apartments, Omaha, NE - PNC MultiFamily Capital
assisted the owner in refinancing $12,500,000 of an existing Sec.
223(a)(7), reducing the interest rate from 7.75 percent to 5.25 percent
over the 360-month life of the loan. All 485 units located in 39
separate buildings are available at market rate. The Seldin Company is
the developer/management agent of this property.
"Through FHA-insured refinancing, PNC MultiFamily offers property owners an appealing interest rate reduction while preserving this much-needed housing option and providing stability to local neighborhoods, " said John Sweazey, president of the multifamily finance division of PNC MultiFamily Capital, San Francisco.
PNC MultiFamily Capital includes activities currently performed in PNC Bank, National Association; PNC Affordable Housing, Inc.; PNC MultiFamily Finance, Inc. (formerly known as TRI Capital Company, Inc.); and Columbia Housing Partners, L.P.
Operating nationwide, these businesses provide a wide array of services to the multifamily housing industry, including: tax-credit equity financing; construction financing; and permanent financing products for both conventional and affordable multifamily housing (featuring FHA and Freddie Mac lending programs).
PNC MultiFamily Capital, with employees and offices across the country, is a nationally recognized, established source of financial services for the multifamily housing industry, particularly affordable and senior housing.
PNC Real Estate Finance specializes in financial solutions for the acquisition, development, permanent financing and operation of commercial real estate nationally. A member of The PNC Financial Services Group, Inc., PNC Real Estate Finance offers treasury and investment management, access to the capital markets, commercial mortgage loan servicing and other products and services to clients that develop, own, manage or invest in commercial real estate.
The PNC Financial Services Group, Inc. (NYSE: PNC), headquartered in Pittsburgh, is one of the nation's largest diversified financial services organizations, providing regional community banking; wholesale banking, including corporate banking, real estate finance and asset-based lending; wealth management; asset management; and global fund services.
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SOURCE: PNC Financial Services Group, Inc.
CONTACT: Amy Vargo of PNC Financial Services Group, Inc.,
+1-412-762-1535, or amy.vargo@pnc.com
Web site: http://www.pnc.com/
Company News On-Call: http://www.prnewswire.com/gh/cnoc/comp/701257.html
