KYLE, Texas, Feb. 26, 2025 -- Gershman Investment Corp. provided financing for the construction of a 300-unit addition to an existing, market-rate apartment project known as Uptown at Plum Creek. This Class A Community is in Kyle, TX, just south of Austin. The FHA Section 241(a) Supplemental Loan program was utilized for this additional phase. This is construction financing, which converts to a fully amortizing 40-year loan and allows for a leverage of up to 90% of value. This is a remarkable execution in the current capital markets for apartment financing when most loans are constrained to 60% of cost at best.
The HUD 241(a) allows Borrowers with an existing HUD-Insured loan to finance additions or improvements, which is particularly effective when the Owners don't want to lose their low interest rate on the existing first mortgage. The loan is an interest-only loan for 24 months until converting to the 40-year fully amortizing loan. All financing using HUD-insured loan proceeds are non-recourse.
For more information on this project, contact Scott Graber (Senior Managing Director) at sgraber@gershman.com or (303) 647-4262.
Gershman Investment Corp. is one of the nation's few independently owned mortgage companies that offer FHA-insured multifamily and healthcare financing. Our extensive history of 70 years of personal service, expertise, and dedication to problem-solving ensures a smooth process for financing of project loans. We rank among the top ten originators of FHA multifamily programs by the US Department of Housing and Urban Development. We are one of a small, select group of lenders nationwide to be HUD-approved for MAP (Multifamily Accelerated Processing) for apartments and LEAN processing for nursing homes and assisted living facilities. For more information about Gershman Investment Corp., please visit www.gershmaninvestmentcorp.com.
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