Gray Stonea leading national commercial real estate finance firm, has provided a $900,000 Fannie Mae loan to refinance an apartment building in Washington, DC through the justice in action Initiative created by the Housing Association of Nonprofit Developers (HAND), the Washington area’s premier membership association dedicated to the production and maintenance of affordable housing. The funding was initiated by Alicia Cotton-Doney, Greystone’s Senior Managing Director, on behalf of The Ayesha M. Johnson Revocable Trust.
Greystone and HAND launched Equity in Action in 2021 to improve access to working capital for BIPOC real estate developers facing challenges related to capital access, asset-based wealth generation and economic mobility. HAND members receive direct access to advisory and financing solutions for affordable housing, refinancing, recapitalization and acquisitions, including access to Greystone’s leading FHA lending platform.
Built in 1974 and acquired in 2005, 4905 Nash in the Deanwood neighborhood of the District of Columbia, is a medium rise building consisting of 12 units. The $900,000 fixed rate Fannie Mae non-recourse loan has a 10 year term with a 30 year amortization period, three years of interest payments and a loan to value (LTV) of 54%. In addition to refinancing, the loan proceeds allow the borrower to continue operating the property and monetize some of its equity.
“For decades, advocates have pointed to patterns of credit discrimination that have perpetuated barriers for BIPOC developers to access the capital they need to realize their affordable housing plans,” said Heather Raspberry, Executive Director, HAND . “Equity in Action disrupts that system while ensuring that BIPOC developers and their future residents are given a real chance of success.”
“We are very pleased to leverage our comprehensive multifamily lending platform and expertise to secure the right financing for our client,” said Ms. Cotton-Doney. “Greystone is deeply committed to making quality housing accessible to all communities. We hope other BIPOC commercial borrowers will tap into the resources available through the Equity in Action program to help address the Washington, DC housing crisis.”
“Thanks to Heather Raspberry and the impactful work of HAND, I began a journey with Greystone as my lending partner. The completion of this transaction is the culmination of a concerted effort and focused intent,” said Ms. Ayesha Johnson, Borrower’s Director. “Alicia and the rest of the Greystone team have been both supportive and responsive to my specific needs and as a result current and future occupants of this property will benefit for years to come. HAND and Greystone together gave us
Access to knowledge and capital that will enable us to maintain livable spaces and improve and beautify our community, building by building.”
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