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Rate Indications*
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Word Around Town
Mortgage Insurance Premium Updates . With the new administration taking office, there has been discussion about eliminating the Green MIP for Section 221(d)(4) and 223(f) loans, as well as a broader reduction in MIP across all loans. We are eagerly awaiting the release of potential Mortgagee Letters with updates on the overall Mortgage Insurance Premium reduction. We will share the letters as soon as they are available.
Congress Passes Funding Bill Through September; NFIP Also Extended (read full article here).
Did You Know?
HUD 223(f) Loans are fully amortizing; Up to 35-year maximum loan term; Limited to the lesser of 35 years or 75% of estimated useful remaining life.
Hudson Highlights
Hudson Realty Capital Arranges $24.6 Million in HUD Financing for Bloomington Apartments in St. George, UT
New York, NY (March 3, 2025)—Hudson Realty Capital, an integrated commercial real estate investment manager and FHA/HUD lender that provides financial solutions to sponsors across the U.S., today announced the recent closing of a $24.6 million FHA Section 223(f) refinancing loan for Bloomington Apartments located in St. George, UT.
Bloomington Apartments was built in 2023 and consists of 118 units of market-rate rental housing. Proceeds from the loan were used to facilitate the conversion of construction-to-permanent financing.
Mandi Hackett, Managing Director and Chief FHA Underwriter at Hudson Realty Capital, said: “HUD’s 223(f) program continues to be a superior fit for market-rate projects converting from construction loans to permanent financing. Borrowers are able capitalize on the high loan-to-value ratio and low debt service coverage ratio making for a unique product that offers countless benefits in an uncertain market.”
Paul Griffin, Managing Director, Due Diligence/FHA Operations, said: “The new loan provides ownership with a stabilizing 35-year, non-recourse, fully-amortizing, fixed-rate loan that will set up the property for the long-term. We are pleased to leverage our FHA lending expertise on behalf of our clients and help meet their goals for their assets.”
Hudson’s team has extensive experience in loan origination, servicing and management, using an integrated approach to aid borrowers in value creation and realizing their business objectives. Hudson Realty Capital has managed investments totaling more than $4.5 billion in aggregate transaction value across the multifamily, office, industrial, retail, mixed-use and hospitality sectors since its inception in 2003. The firm is a fully integrated commercial real estate lender with a robust in-place infrastructure that includes in-house origination and due diligence, asset management and servicing expertise.
In November, Hudson Realty Capital launched an $800 million bridge-to-HUD loan program for multifamily projects with targeted loan sizes of between $15 million to $50 million. To date, the firm has issued more than $380 million in term sheets and is reviewing another $350 million in loan applications for the bridge program.
Our Commitment
Hudson Realty Capital strives to combine a responsive, hands-on approach to investment with a unique ability to quickly adapt to shifts in the market. While we have a new and refreshed look, our top-level client service remains the same.
Check out our website and follow us on LinkedIn for our latest updates.
The Hudson Report and the news, information and observations stated herein are provided for informational and discussion purposes only and are not, and may not be relied on in any manner, as commitment or as legal, tax or investment advice. Hudson believes that the information provided herein is reliable but does not guarantee its accuracy or completeness and material aspects of information herein may change without notice. The interest rate indications set forth in The Hudson Report are estimates based on current market conditions. Final rates will be set at rate lock or at closing. The Hudson Report is not an offer or commitment to lend, and any such offer shall only be set forth in a signed, written commitment letter from Hudson. All transactions are contingent on satisfactory due diligence review and approval including evaluation of 3rd party reports, borrower credit, loan collateral and property, borrower and guarantor financials. Hudson is an Equal Opportunity Lender.
Hudson Realty Capital LLC, 570 Lexington Avenue, 22nd Floor, New York, NY
