We were asked to provide long-term multifamily financing for the Las Americas Apartments. The property is a multifamily affordable housing project located in Houston, Texas. The property owner needed a permanent mortgage loan for this Class C multifamily property.
The property is located in the Gulfton neighborhood of Houston Texas, an area which had been in decline for three decades, but was showing signs of improvement. The Las Americas Apartments, a property which had, itself, seen considerable decline, has 534 dwelling units.
Because of property condition and age, as well as neighborhood concerns, we turned to Fannie Mae multifamily. We were able to place a Fannie Mae multifamily affordable housing loan in combination with Fannie Mae Affordable Housing Revenue Bonds to provide the $9,3000,000 multifamily loan.
Fannie Mae Multifamily Affordable Housing Loan Case Study
|Project||Fannie Mae Multifamily Affordable Housing Loan Texas › Fannie Mae Multifamily|
|Property||Las Americas Apartments Houston Texas|
|Location||5909 Glenmont DriveGulfton Area, Houston Texas|
|Property Type||Multifamily Affordable Housing|
|Loan Type||Fannie Mae Multifamily Affordable Housing Revenue Bonds|
|Loan Program||Fannie Mae DUS › Fannie Mae Multifamily Affordable Housing Loan|
|Project Size||534 Dwelling Units|
Fannie Mae Multifamily
- Apartment loan minimum $750,000
- Preferred loan minimum $3,000,000
- No maximum loan amount
- 80% Loan to Value Ratio
- Self amortizing 30 year term
- Low, fixed interest rate
- 1.25x debt coverage ratio
- Non-recourse as to the borrower
- Affordable Housing Details
Fannie Mae Multifamily Affordable Housing Loan Texas Location
Gulfton Neighborhood Information
The Gulfton neighborhood is an area in Southwest Houston, Texas that includes a 3.2 sq mile group of apartment complexes that primarily house Hispanic and immigrant populations. It is located between the 610 Loop and Beltway 8, west of the City of Bellaire, southeast of Interstate 69 and north of Bellaire Boulevard.
In the 1960s and 1970s Gulfton experienced rapid development, with new apartment complexes built for young individuals from the Northeast and Midwest United States. They came to work in the oil industry during the 1970s oil boom.
In the 1980s, as the economy declined, existing tenants left, resulting in significant drop in occupancy rates in the apartment complexes and forcing many complexes into bankruptcy and foreclosure. Owners marketed the empty units to newly arrived immigrants and Gulfton became a predominantly immigrant community.
Beginning in the 1980s Gulfton’s crime rate increased and schools were increasingly overwhelmed with excess students. The city of Houston responded to the sudden demographic shifts by increasing police presence, and the school district responded by opening more schools to handle the influx of students. After the 1980s demographic and socioeconomic transitions, Gulfton gained a community college campus, two additional elementary schools, added public bus routes, a park, a community center, a public library, and a juvenile detention facility.
By 2000 Gulfton was the most densely populated community in Houston, with 71 percent Hispanic residents, including many recent immigrants from Mexico and Central America.
More About Fannie Mae Multifamily Affordable Housing Loan
Fannie Mae multifamily affordable housing loan provide liquidity, stability and affordability for apartment financing by serving the secondary mortgage market as a reliable source of multifamily mortgage capital. Some 85% of the apartments financed with Fannie Mae apartment loans are affordable to families earning at or below 100% of the area’s median income level. The vast majority of Fannie Mae multifamily loans are for workforce housing.
Fannie Mae provides financing to a wide spectrum of the multifamily housing market. Fannie Mae multifamily financing is available for market rate apartments, rent-restricted affordable housing, housing cooperatives, seniors housing projects, student housing and manufactured housing communities. Fannie Mae apartment loans are available for loans greater than $1 million ($750,000 for Fannie Mae Small Multifamily Loans) up to $1 billion structured transaction facility.
A network of Delegated Underwriting & Servicing (DUS) lenders originate Fannie Mae apartment loans using a shared risk model. The majority of Fannie Mae DUS multifamily loans are supported with private capital and 98% of the liquidity Fannie Mae delivers to the multifamily market is supported by private capital through the purchase of Fannie Mae mortgage backed securities by private investors.
View details about all of the Fannie Mae Multifamily Loan Programs we offer.