Fannie Mae's loan carries a 12-year term with a 30-year amortizing structure; eight years yield maintenance and is interest-only for the first two years. That structure allows Alliance to sell or refinance the property after the eighth year with a much smaller prepayment penalty, and have a longer term loan out to a final maturity in the 12^th year.

Hidden Lakes Apartments consists of one- and two-bedroom apartments with amenities including a concierge service, cyber café, travel services and a modern clubhouse with a pool and spa.

“Appetite for Fannie Mae refinancing is incredibly strong, and with recent lending caps raised, we are thrilled to be able to execute this option for more borrowers as need demands,” says Joe Mosley, executive managing director and head of agency lending at Greystone. “This particular structure from Fannie Mae DUS affords the flexibility we knew this client needed in order to obtain a longer term loan with the option to prepay it early without a large fee.”

GRAND RAPIDS, MI—Greystone, the New York-based lending and investment firm, has just provided a $25,058,000 Fannie Mae DUS® loan to refinance Hidden Lakes Apartments in Kentwood, MI, a suburb of Grand Rapids. Alliance Management has begun renovating the 384-unit property, and this loan will help it remain competitive in a multifamily market registering historically low vacancy and healthy rent growth.

The transaction was originated by John Marr, a managing director at Greystone, on behalf of Alliance.

“When the Grand Rapids multifamily market showed strengthening two years ago, the owner began an extensive property upgrade funded from cash flow,” Marr tells GlobeSt.com. “This was really well received, so it was expanded beyond the initial scope, causing a reduction in partners' distributions. The new loans enabled the owner to make the deferred as well as additional distributions to the partners and also continue the upgrade program, which further increases the value of their property.”

As reported in GlobeSt.com, the multifamily community here has attracted a remarkable amount of interest from outside investors. In 2015, for example, a Georgia-based investment group bought Ramblewood Apartments, a 1,710-unit property just outside of Grand Rapids, for $100.4 million. And in late 2014, a New York-based firm bought a 1,610-unit portfolio of six local communities for more than $102 million.

Fannie Mae's loan carries a 12-year term with a 30-year amortizing structure; eight years yield maintenance and is interest-only for the first two years. That structure allows Alliance to sell or refinance the property after the eighth year with a much smaller prepayment penalty, and have a longer term loan out to a final maturity in the 12^th year.

Hidden Lakes Apartments consists of one- and two-bedroom apartments with amenities including a concierge service, cyber café, travel services and a modern clubhouse with a pool and spa.

“Appetite for Fannie Mae refinancing is incredibly strong, and with recent lending caps raised, we are thrilled to be able to execute this option for more borrowers as need demands,” says Joe Mosley, executive managing director and head of agency lending at Greystone. “This particular structure from Fannie Mae DUS affords the flexibility we knew this client needed in order to obtain a longer term loan with the option to prepay it early without a large fee.”