ICF specs net mid-rise apartment developer HUD-reduced mortgage terms

Sources: Walker & Dunlop Inc., Bethesda, Md.; TF Forming Systems, Green Bay, Wis.; CP staff

Bedford Development has started the six-story Manseau Flats apartment project in Ashwaubenon, Wis., on the strength of insulating concrete walls and a mortgage package economized by a U.S. Department of Housing & Urban Development program rewarding energy efficient multi-family dwelling design.

The Waukesha, Wis., developer secured a $15.5 million loan structured by New York Stock Exchange-traded Walker & Dunlop. A team from the commercial real estate finance specialist arranged the loan via the HUD 221(d)(4) program, whose provisions include Green Mortgage Insurance Premium (MIP) reduction—good for a rate 20 to 45 basis points below conventional financing.

"No HUD 221(d)(4) loan is a walk in the park, but partnering with Walker & Dunlop made the process much easier. Their knowledge and experience in the HUD world made the complexities of our deal a non-issue," says Bedford Development Executive Vice President Ryan Bedford.

"This was an exciting project for both the developer and Walker & Dunlop because it takes advantage of the Green MIP program, which provides considerable interest rate savings to the developer,” adds Walker & Dunlop Senior Vice President Brandon Strong. “To achieve National Green Building Standard designation, Bedford will utilize the insulated concrete form wall system. Not only is this technique environmentally-friendly, but it also provides natural disaster resistance and improves ease of construction."

With 72 one- or two-bedroom units scheduled for late-2018 occupancy, Manseau Flats incorporates TF Forming Systems’ Thermoform vertical ICF, comprising panels up to 12 feet high and 30 feet long; Spancrete prestressed hollow core floor plank (first two levels); and, concrete on metal deck (upper three levels). The project is located on two acres along the Fox River, amid the revitalizing Riverfront/Broadway District.


Related article

Insulating concrete forms rise to U.S.-record height at New York site