Background

Ridgewood Apartments is a 240-unit market rate new construction apartment project in Amarillo, TX. The developer constructed a similar project in the market with conventional financing several years earlier which Rockhall refinanced under HUD’s 223(f) program. Seeing the benefits of FHA insured financing, the developer looked to Rockhall for its new construction financing.

The Challenge

The developer had no previous experience with HUD new construction multifamily programs.  The developer planned to use an identity of interest General Contractor and Managing Agent who also lacked HUD new construction development experience. 

Outcome

Rockhall financed the development with a HUD 221(d)4 loan. The developer was able to use its I-O-I General Contractor.  A HUD-experienced arm’s length managing agent introduced by Rockhall was brought on to manage the project until it reached stabilization.  The development has been completed and is leasing up on schedule.