The developer of the 535-unit
Gramercy On the Park obtained a
$50M loan.

DALLAS-Billlingsley Co. has obtained financing to the tune of $49 million on its 535-unit Gramercy On the Park through the Federal Home Loan Mortgage Corp. (Freddie Mac). The 10-year, fixed-rate financing is being used to pay off existing construction financing on the 535-unit multifamily property, which was completed in 2011.

“This is a fairly routine refinance of an interim loan,” says HFF senior managing director Trey Morsbach, who led the team representing Billingsley Co.  “This was a great piece of real estate, great sponsorship and a repeat borrower with Freddie who had a good relationship with the lender.” Gramercy On The Park at 4755 Gramercy Oaks Dr. offers one- and two-bedroom units averaging 889 square feet. The property is 96% occupied.

Even more interesting is that the initial construction loan was likely not too difficult to obtain. “There’s a lot of bank lending capability for multifamily constructin,” Morsbach tells GlobeSt.com. “Lenders are readily available for quality developers.”

Equity availability, however, is a somewhat different story. “The capital willing to provide equity is more scarce,” Morsbach explains. “They’re putting the breaks on except for – and this will sound like a clich