Green Program Provides Big Capital Savings

The owner of a 182-unit apartment building in Las Vegas has secured a refinancing loan through Fannie Mae’s green rewards program. The $14.2 million loan is structured with seven years of interest-only payments and a fixed interest rate in the mid-three percent range.

To use the green program, the borrower is making low-cost upgrades to the property to reduce energy consumption at the property. As a result, the spread was reduced by more than 40 bps when compared to a non-green execution.

Aaron Beck, VP of NorthMarq’s San Diego regional office secured the funds on behalf of the borrower.