WASHINGTON, DC—Fannie Mae has provided closed on its first loan under its Multifamily Green Building Certification Pricing Break program, which it announced earlier this year.
The program recognizes eight certifications including the USGBC's LEED program. For qualifying properties, Fannie Mae is offering a 10 basis point interest rate reduction, to 3.9% from 4% on loans for multifamily refinance, acquisition or supplemental mortgage loan. When the program was announced, there was immediate interest, Chrissa Pagitsas, the director of Fannie Mae's Multifamily Green Initiative, told GlobeSt.com at the time. She predicted that it wouldn't take long for a deal to close.
Several weeks later she has been proven correct.
The property is The Station House, acquired this month by Prudential Real Estate Investors on behalf of an institutional client. It is a 50-unit, mid-rise multifamily rental property in Maplewood, NJ, with a USGBC LEED New Construction Certification.
Wells Fargo originated the $10.1 million loan. With the 10 basis point reduction in its all-in interest rate, PREI will save more than $101,000 in interest payments over the life of the loan. The loan is being securitized as a "Green Mortgage-Backed Security," indicating to fixed-income investors that the bond supports reductions in impacts to the natural environment.
The property is an adaptive re-use of a formerly environmentally contaminated lot that previously housed the historic Maplewood Police Station. The Station House is also appealing because it was developed adjacent to New Jersey Transit's Maplewood Station, offering residents a 30-minute, direct access train ride to New York Penn Station.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
