Transforming Traverse City: Greystone Secures .2M Loan for Innovative Affordable Housing Project

In a strategic move to address the growing need for affordable housing in Traverse City, Michigan, Greystone, a leading national commercial real estate finance company, has secured a ,159,600 HUD-insured 221(d)(4) loan to finance the construction of a 192-unit multifamily community in the region. This landmark project, known as Corners Crossing, is a collaborative effort between Wallick Communities and Homestretch Nonprofit Housing Corporation, aimed at providing middle-income residents with access to high-quality, affordable living options.

Unlocking Opportunity: Greystone's Innovative Financing Empowers Affordable Housing Development

Bridging the Gap: Greystone's HUD-Insured Loan Fuels Corners Crossing

Greystone's .2 million HUD-insured 221(d)(4) loan serves as the cornerstone of the Corners Crossing project's financing. This long-term, low-interest financing solution enables the developers to overcome the challenges posed by rising construction costs, making the project financially viable and sustainable. By leveraging Greystone's expertise in multifamily and affordable housing finance, the Corners Crossing development can now move forward, transforming the landscape of Traverse City and providing much-needed housing options for middle-income residents.

Collaborative Approach: Unlocking Funding from Multiple Sources

In addition to the Greystone loan, the Corners Crossing project will be financed through a diverse array of funding sources. The American Rescue Plan Act (ARPA) awarded by Grand Traverse County and the Michigan State Housing Development Authority (MSHDA) will provide crucial financial support, ensuring the project's viability and accessibility. Furthermore, the Blair Township's first-ever PILOT (Payment in Lieu of Taxes) ordinance for the project will create a fixed rate for the development's real estate taxes, further enhancing the project's financial stability.

Addressing the Workforce Housing Challenge

Corners Crossing is designed to cater to middle-income residents, with rents ranging from 80-120% of the area median income (AMI). This strategic approach aims to bridge the gap between traditional affordable housing and market-rate rentals, providing a much-needed solution for the region's workforce housing needs. By targeting this underserved demographic, the project will offer high-quality, affordable living options to essential workers, such as teachers, healthcare professionals, and service industry employees, who are often priced out of the local housing market.

Crafting a Vibrant Community

The Corners Crossing development will feature a thoughtfully designed community, with 96 one-bedroom, 78 two-bedroom, and 18 three-bedroom apartment homes spread across eight, three-story walk-up buildings. Each building will house 24 apartments, creating a cohesive and welcoming environment. The community will also boast a clubhouse with an on-site management office and a range of resident amenities, including a fitness center, office and computer center, and a patio. Additionally, the project will incorporate a playground and a dog park, fostering a sense of community and enhancing the overall quality of life for residents.

Driving Economic Growth and Opportunity

The Corners Crossing project represents a significant investment in the Traverse City region, with a total development cost of million. This influx of capital will not only provide much-needed housing but also contribute to the local economy through job creation during the construction phase and ongoing employment opportunities for property management and maintenance staff. By addressing the workforce housing challenge, the project has the potential to attract and retain essential workers, further strengthening the economic fabric of the community.

Greystone's Expertise Shines Through

Greystone's role as the leading HUD lender for multifamily housing projects has been instrumental in the success of the Corners Crossing development. The company's deep understanding of the HUD-insured financing landscape and its proven track record in executing on developers' visions for new multifamily housing, particularly workforce and affordable communities, have been crucial in bringing this project to fruition. Greystone's expertise and commitment to innovative financing solutions have been pivotal in transforming the housing landscape in Traverse City.