Greystone Provides $30M Agency Construction Loan on Florida Rental Development
Greystone has provided just over $30 million in U.S. Department of Housing and Urban Development (HUD)-backed financing to developer and manager Davis Companies to help facilitate the construction of a residential project just north of Jacksonville, Fla., according to information from Greystone.
The HUD Section 221(d)(4) fixed-rate, non-recourse loan — a program dedicated for new construction and significant rehabilitation of multifamily properties — will cover 85 percent of the cost of Davis and Sons’ development of a 188-unit multifamily complex called Mills Creek Preserve Apartments in Yulee, Fla., which is about 30 miles north of downtown Jacksonville. Davis and Sons is a division of Newberry, Fla.-based real estate company Davis Companies.
Greystone’s Christine Griffin originated the loan, which pays interest at a fixed-rate and will transition to a 40-year permanent loan once stabilized, according to Greystone. She said in a prepared statement: “The HUD construction financing is an excellent option for a quality sponsor who is looking for long-term and low-rate financing from the outset of a project.”
The site will host eight garden-style buildings within a gated community and there will be a mix of one-, two- and three-bedroom residences, with in-unit washers and dryers and outdoor space. The property will have a clubhouse, a fitness center, a business center, a swimming pool, a pet park and also around 10 acres of recreational park space, according to website information from CHW Professional Consultants, which is handling the planning and design.
Stefan Davis, the principal of Davis Heritage, a separate division of Davis Companies said in a statement that the firm is “excited that our newest project will bring much-needed multifamily housing to Jacksonville’s growing metro area.”