[March 19, 2014]

Greystone Structures Creative Loan Lock-Out Solution for an Affordable Multifamily Property in North Carolina

Greystone, a leading national provider of multifamily and healthcare mortgage loans, has restructured and refinanced a $4.2 million loan on a 99-unit affordable housing complex, resolving certain lock-out issues and effectively eliminating defeasance costs, which were estimated to exceed $500k.

Knoxville, Tenn.-based Lawler Wood Housing, a leading affordable housing developer, had a bond financed FHA-insured construction loan under section 221(d)(4) for Lake Road Apartments in High Point, North Carolina, which was locked out for refinancing until October 2015. By purchasing the bonds in the secondary market and working alongside the Issuer and trustee to restructure the bonds, Greystone facilitated a voluntary waiver of the lock-out provision. Greystone then provided an FHA-insured 223(a)(7) loan, thereby enabling the borrower to take advantage of the favorable interest rate environmet. Jonathan Rosenberg, an originator at Greystone with expertise in affordable housing finance and tax-exempt bonds, structured the transaction on behalf of Lawler Wood Housing.

"Greystone's expertise lies in finding solutions where there may be roadblocks; in this case, we applied our ingenuity to a situation where a lock-out provision, if not waived, would have precluded the owner from economically refinancing," said Betsy Vartanian, head of Greystone's FHA lending group. "Multifamily owners may not necessarily be constricted by loan lock-outs in some cases, and these are situations where Greystone's knowledge of the secondary bond markets, combined with our deep work-out expertise can provide borrowers with options and, ultimately, cost savings," she added.

Greystone provides mortgage finance solutions across multiple platforms, including FHA, Fannie Mae, Freddie Mac, USDA, CMBS, bridge, mezzanine and other proprietary loan programs. In 2013, Greystone was ranked #1 in combined multifamily and healthcare FHA lending, ranked #1 in Small Loans and #3 in Affordable Housing as a Fannie Mae DUS lender, and a top-5 Freddie Mac lender for seniors housing.

About Greystone

Greystone is a financial services and private investment group whose original core business is multifamily real estate lending. Over the years, Greystone has added business lines that are related to, and natural extensions of, its core business. Headquartered in New York with offices across the U.S., Greystone is active in three major business segments: Mortgage Finance, Healthcare and Real Estate. Greystone's mission is to apply unparalleled creativity while modeling corporate compassion. Loans are offered through Greystone Servicing Corporation, Inc., Greystone Funding Corporation and/or other Greystone affiliates. For more information about Greystone's multifamily and healthcare financing solutions please visit http://www.greyco.com.

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