PROJECT DESCRIPTION

Cypress Creek at Parker Boulevard is a 220-unit newly constructed mixed-use multifamily housing apartments. The entire property consists of 11 three-story buildings, a club building, pool, sport field, basketball court, maintenance building, playground and covered mail area & picnic area.

It is a mixed income apartment having the building be approved for 9% Low Income Housing Tax Credits (LIHTC) as well as the USDA RHS 538 GRRHP restrictions.  Most of the units (140) will be 9% LIHTC restricted. Fourteen (14) of them will be rent restricted to 30% of AMI, 56 units at 50% AMI, & 70 units at 60% AMI. The remaining 80 units will be rented out at market and will still be below USDA 538 requirements.

FINANCING

The financing of this deal was arranged by Kevin Bowen (SVP, Dallas) & Bob Morton (SVP, Indiana). It utilized the USDA RHS 358 GRRHP, making it the largest RD loan ever closed. It is a non-recourse 40-year term and 40-year amortization. It features a 4.15% fixed interest rate for the full loan term.

CHALLENGES

Working with the GNMA investment market to manage a low rate we locked the loan at and getting Rural Development Texas and the National Office with the size of the project and the size of the loan.  Rural Development was great to work with on this project and at the end of the day there were only a few additional conditions added to the Commitment from Rural Development.