Pillar, an industry leader of financing solutions for affordable and market rate multifamily and healthcare properties recently acquired by SunTrust Bank, a subsidiary of SunTrust Banks, Inc. (NYSE: STI), announced today that it has originated a $9.657 million HUD 223(a)(7) loan to refinance the Airpark Apartments in Gaithersburg, Maryland. Built in 2008, the Airpark Apartments is a 108-unit affordable housing community that features one- and two-bedroom apartments. The property was close to fully occupied at time of close on January 26.
Artin Anvar, Managing Director in Pillar’s Washington office, originated the fixed-rate, 40-year term loan with a 40-year amortization schedule. The borrower is E. Kevin Smart of Smart Development, a private multifamily investor located in Maryland.
“This was a very complicated transaction due to the many different layers we had to work through to structure the transaction, including the previous HUD loan, low income housing tax credits, and a home loan from Montgomery County. However, we resolved the challenges, coordinated with multiple parties and secured significant debt savings for the borrower. We also took advantage of the new HUD guidelines for affordable properties to lower the mortgage insurance premium to 25 basis points, which was an added benefit on top of our client’s debt service savings,” said Anvar.
About Pillar
Through its acquisition, Pillar has joined the SunTrust Commercial Real Estate (CRE) line of business, which is part of SunTrust’s Wholesale Banking Segment. Pillar is a direct lender for multifamily and healthcare properties, serving clients across the U.S. in 14 major markets. The company’s lending platform consists of Fannie Mae, Freddie Mac and HUD products. Pillar provides a full array of financing solutions, covering affordable and market rate multifamily housing, student and senior housing, manufactured home and RV communities, as well as healthcare properties such as assisted living, memory care and skilled nursing facilities.
Through Cohen Financial, a national real estate capital services firm recently acquired by SunTrust Bank, a subsidiary of SunTrust Banks, Inc. (NYSE: STI), Pillar provides access to capital markets debt placements and consulting services for financial institutions, commercial real estate developers and investors, as well as third-party rated, primary and special loan servicing, loan administration and advisory services. For more information, visit www.pillarfinance.com.
About SunTrust Banks, Inc.
SunTrust Banks, Inc. is a purpose-driven company dedicated to Lighting the Way to Financial Well-Being for the people, businesses, and communities it serves. Headquartered in Atlanta, the Company has three business segments: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking. Its flagship subsidiary, SunTrust Bank, operates an extensive branch and ATM network throughout the high-growth Southeast and Mid-Atlantic states, along with 24-hour digital access. Certain business lines serve consumer, commercial, corporate, and institutional clients nationally. As of December 31, 2016, SunTrust had total assets of $205 billion and total deposits of $160 billion. The Company provides deposit, credit, trust, investment, mortgage, asset management, securities brokerage, and capital market services. SunTrust leads onUp, a national movement inspiring Americans to build financial confidence. Join the movement at onUp.com.
