Chris Will With Gershman Mortgage Closes HUD/FHA Loan for Metro North Crossing Apartments
ST. LOUIS, Nov. 11, 2020 /PRNewswire/ -- Gershman Investment Corp. provided construction and permanent financing for Metro North Crossing Apartments in Kansas City, MO. Vice President Chris Will originated a $52 million HUD 221(d)4 construction to permanent loan for this new multifamily development. Construction began in August. This $60 million dollar HUD-insured development, is located at the intersection of Highway 169 and NW Barry Road. The project is comprised of 249 one and two-bedroom luxury apartments and townhomes, as well as 31,000 Sq. Ft. of retail, office, and restaurant space. The townhome, retail, and office components are part of the development team's vision for a "Main Street Village" area within the larger 93-acre shopping and entertainment redevelopment district. Formerly the Metro North Shopping Mall, the site already includes the newly opened T-Shotz, a three-story, next generation golf and entertainment complex.
Amenities at the apartments include a large resort-style swimming pool with multiple outdoor lanais, an outdoor grilling kitchen, a large clubhouse for private parties, pickleball courts, and a walking trail. Other amenities include a dedicated off-leash area for pets, a private exercise facility, an Amazon delivery locker, and covered garage parking.
The $52.7MM GNMA-backed HUD 221(d)4 provided Metro North Crossing Apartments with 40-year fixed, non-recourse, construction-permanent loan. Gershman's GNMA security was acquired by The Builder's ProLoan Bond Fund, a pension fund whose members are various labor trade unions. The Fund provided a significantly below-market permanent interest rate of 3.10%, and 2.85% interest-only during construction. Gershman assisted the borrower in obtaining a Mortgage Insurance Premium ("MIP") reduction, set at 25 basis points, for its commitment to obtain a National Green Building Standard certification upon completion. In addition to the optimal FHA loan terms, the owner entered into an agreement with the Planned Industrial Expansion Authority of Kansas City (PIEA) for sales-tax exemption on the purchase of construction materials, significantly reducing the cost of construction. Chris Will commented, "This project will be a great asset to the community and replace a vacant mall with a thriving residential and commercial use project. We are thrilled to part of the transformation! This is one of the largest 221(d)4 loans in Gershman Investment Corp's 65-year history."
PROPERTY: Metro North Crossing Apartments
ADDRESS: Highway 169 & NW Barry Rd. Kansas City, MO 64155
LOAN AMOUNT: $52.7 Million
LOAN CODE/SECTION: FHA Section 221(d)(4)
UNITS: 249
Amenities Include:
- Clubhouse
- Swimming pool
- Pickleball
- Walking trail
- Exercise facility
- Covered garage parking
- Main floor retail, office, and restaurant space
https://www.gershman.com/commercial-mortgages
About Gershman: Gershman Mortgage is among the largest mortgage companies in the Midwest, licensed in 13 states, with offices in 8. The company was founded in St. Louis, MO by Solon Gershman in 1955. Since then, the company has grown to be one of the only independently-owned and operated mortgage companies nationwide offering residential, multifamily apartment and healthcare facility financing. Gershman Mortgage is a customer-centric company devoted to creating and maintaining long-lasting relationships with our customers.
SOURCE Gershman Mortgage
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