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.