One Of Mid-Atlantic’s Largest Mixed-Use Developments Scores $72M HUD Financing

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The Berkleigh, part of a master-planned community that is one of the largest mixed-use developments in the mid-Atlantic region, can now move ahead. The 317-unit multifamily project just closed a $72.6 million U.S. Housing and Urban Development loan to fund construction, originated by Walker & Dunlop, Commercial Observer has learned.

The financing, funded through HUD’s 221(d)(4) new construction program, has a two-year term before it converts to a 40-year, fully amortizing, permanent fixed-rate loan.

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The program—by its own admission—has “one of the most grueling and confusing” loan application processes of any multifamily financing. However, it also offers the lowest-rate non-recourse funding on the market. Dee McClure of Walker & Dunlop handled the deal, the company said.

The all fixed-rate, construction-to-perm 221(d)(4) loans offer leverage up to 90 percent of loan-to-cost, according to the Commercial Real Estate Finance Company of America, and up to 100 percent of LTC for a non-profit developer.

The debt service coverage ratio in the deal is 1.176x, a representative for the originator said.

The Berkleigh is the multifamily component of Baltimore Crossroads @ 95, a Middle River, Md., community that will cover more than 1,000 acres, according to information from Walker & Dunlop. Upon completion, it will boast retail, residential and office space.

Last year, the related Greenleigh at Crossroads, a $750 million mixed-use portion of the Baltimore Crossroads @95, broke ground, as the Baltimore Sun reported at the time. That project, which should be complete in 10 or 15 years, “will include 1,000 detached homes and townhouses, three mid-rise office buildings totaling 300,000 square feet, another 128,000 square feet in single-story office buildings, 116,000 square feet of retail and a 120-room Springhill Suites by Marriott hotel,” the paper said.