VIENNA, Va., April 10, 2019 /PRNewswire/ — MidHudson LLC has closed another transaction using its HUD Reserve Funding Product. The MidHudson preferred equity investment provided the working capital and initial operating deficit reserves to complete the financing of The Edge at Langham Creek in Houston, TX, a 115-unit multifamily development. This investment was the final piece of the $18 million capitalization for the project. The developer of The Edge is HS Development, a Houston, Texas based development firm.
MidHudson offers developers a non-dilutive alternative for raising the reserves required for HUD financed developments. The product reduces the amount of common equity required for a project and, as a result, raises equity returns. Further information on MidHudson is available at www.MidHudsonRE.com.
MidHudson President Joseph Carroll stated "It is gratifying to see the MidHudson Reserve Funding Product allow the quality team at HS Development to complete their financing. We feel like we really made a difference; getting shovels in the ground more quickly and in a more financially efficient manner than they otherwise would have."
HS Development President Steven Helm, said, "Once we contacted MidHudson, they moved quickly and efficiently. We went from introduction to execution in 5 weeks. They quickly got up to speed on the project and were able to issue an LOI and get to closing to meet a tight deadline. Their participation was accretive to the project." Helm added, "Working with them was streamlined and simple. We plan to work with MidHudson on our next D4 project."
In response to Helm’s comment, Dan Ford, MidHudson’s Head of Origination said, "We recognize that we are only one part of the transaction, so we try to make our process simple and inexpensive. We have great financial sponsorship and that allows us to quickly make commitments to get more deals closed."
MidHudson extends its appreciation to Mark Crosswell and Eric Kline at Berkadia and Scott Thurman at Greystone for their representation.
MidHudson LLC provides a solution — The MidHudson HUD Reserve Funding Product — that satisfies the reserve requirements for developers using HUD 221(d)(4) financing. MidHudson was founded by Chris Finlay of Middleburg Real Estate Partners, in response to its experience using HUD financing. MidHudson offers 221(d)(4) borrowers a product that uses a streamlined process to provide the required reserves in a manner that typically reduces the amount of common equity required from the developer by about 30% and increases equity returns by up to 25% In today’s challenging lending environment, MidHudson believes that its program will allow greatly needed multifamily projects to be built that otherwise would not be. For more information, please visit www.MidHudsonRE.com.