Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ST. CHARLES, MD-Locally based American Community Properties Trust has secured $25 million in financing from a US Housing and Urban Development program for multifamily construction. ACPT will be using the loan–which is slightly more than the actual development costs, according to financier Capmark Financial–to build a 184-unit property called Gleneagles Apartments in this planned community. This development will consist of eight buildings on an 11-acre site; the one, two and three-bedroom units will range in size from 900 to 1,830 square feet.

Capmark Financial secured the loan through HUD’s 221 (d) multifamily program, a 40-year non-recourse permanent mortgage with an interest rate of 6.9%. The transaction closed last week, Richard Price, senior vice president and branch manager, tells GlobeSt.com. The way it works is straightforward: HUD insures the mortgage the Capmark has issued on the program, allowing the lender to combine both construction and permanent financing in a single package. Capmark is an active user of this program.

Last year Congress approved an increase in the program’s statutory limits–a welcome development for high-cost areas along the East Coast, Price says. “With the credit crisis we are in right now, the FHA programs are much more valuable than they ever have been before.”

The cost of developing the property will be slightly less than the $25-million mortgage, Price says. “ACPT owns the land outright and that has allowed financing to be higher than the leverage. It is a loan that is nicely leveraged–but not overly leveraged to create risk to Capmark or FHA.” ACPT did not return a call to GlobeSt.com in time for publication.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS Fall 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.