Pillar Originates More Than $9.6 Million New HUD Loan To Refinance An Affordable Housing Property In Gaithersburg, Maryland

An Affordable Housing Property In Gaithersburg, Maryland
Washington, D.C. (February 6, 2017) – Pillar, an industry leader of financing solutions for affordable and market rate multifamily and healthcare properties recently acquired by SunTrust Bank, a subsidiary of SunTrust Banks, Inc. (NYSE: STI), announced today that it has originated a $9.657 million HUD 223(a)(7) loan to refinance the Airpark Apartments in Gaithersburg, Maryland. Built in 2008, the Airpark Apartments is a 108-unit affordable housing community that features one- and two-bedroom apartments. The property was close to fully occupied at time of close on January 26.

Artin Anvar, Managing Director in Pillar’s Washington office, originated the fixed-rate, 40-year term loan with a 40-year amortization schedule. The borrower is E. Kevin Smart of Smart Development, a private multifamily investor located in Maryland.

“This was a very complicated transaction due to the many different layers we had to work through to structure the transaction, including the previous HUD loan, low income housing tax credits, and a home loan from Montgomery County. However, we resolved the challenges, coordinated with multiple parties and secured significant debt savings for the borrower. We also took advantage of the new HUD guidelines for affordable properties to lower the mortgage insurance premium to 25 basis points, which was an added benefit on top of our client’s debt service savings,” said Anvar.