Group surpasses year-over-year total production by nearly 40 percent
Chevy Chase, Md. – October 10, 2017 – Berkadia today announced its Housing and Urban Development team arranged more than $2.15 billion in financing during HUD’s 2017 fiscal year, surpassing year-over-year total production figures by roughly 40 percent.
“This past fiscal year saw a great deal of momentum, particularly as it relates to the tremendous interest in the HUD 221(d)4 new construction program,” noted Steve Ervin, senior vice president and Berkadia HUD team lead. “With banks pulling back on multifamily construction leverage, more developers turned to the program for their financing. Combined with other factors, such as HUD’s successful completion of its transformation process and streamlined underwriting timeframes, it helped propel us to eclipse $2 billion in total closed business a month before the fiscal year ended.”
The team kicked off FY17 by arranging a $52.7 million loan for Wheeling Hospital, a general medical and surgical hospital in Wheeling, West Virginia. Berkadia successfully worked with the investor to lower the interest rate by 1 percent before the lockout period expired.
Also of note was Berkadia’s broad range of expertise gained through decades of leadership in the HUD finance arena. Multiple loans were closed in each of HUD’s loan programs from new construction to hospitals to healthcare to refinances.
In terms of originations by program, Berkadia experienced a 60 percent increase in HUD 221(D)4 loans from FY16. Perennially recognized by the agency as a top HUD lender, Berkadia originated 152 loans through HUD this past fiscal year.