Joe Carroll
WASHINGTON, DC–Earlier this month a company that had launched in June tried out a financial structure it had created for a HUD loan. Specifically it was a 221(d)(4) loan, which is used for multifamily development, and the structure addresses the expense of raising equity for these loans.
The firm is MidHudson LLC, located in the Washington DC area, and the client is Graham Development, a Austin, Texas-based property development firm that was seeking financing for The Venue at Werner Park in Papillion, NE.
MidHudson didn't use some complicated structure to reduce the costs for its client. Rather it simply made a preferred equity investment to help Graham Development meet HUD's required working capital and initial operating deficit reserves for these loans.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
