The Property

Greenbrier is a premier 66-unit townhome community located in Greenville, North Carolina. Developed between 2022 and 2023, the project represents the vision of a seasoned local developer, with more than 20 years of experience. While this was the client’s first multifamily community, his understanding of the Greenville market allowed him to deliver a product that met the area’s growing demand for housing.

As the construction loan approached maturity, the client’s objective was clear: “Secure permanent financing that maximized cash-out proceeds while providing long-term stability at the lowest possible interest rate.”

After evaluating options, Sweetwater Capital determined HUD financing as the ideal solution. It offered the combination of maximum leverage, long-term fixed financing, and an attractive interest rate. However, because this was the client’s first multifamily development, he wanted additional confidence that the property would meet HUD’s engineering standards before fully committing to the process.

The Challenge

The primary concern was minimizing risk before entering the HUD loan process.

The client was cautious moving towards the engineering inspection, knowing that significant repair requirements could impact both the financing timeline and the amount of cash available at closing.

Rather than proceeding immediately, Sweetwater Capital recommended completing the engineering report first. This allowed the client to make an informed decision, before investing additional time and resources into the HUD application.

When the report was completed, the results were highly favorable. Only a handful of minor repairs were identified, giving the client the confidence to move forward with the HUD execution.

From that point forward, success depended on maintaining momentum. The client and his team responded quickly to every documentation request, allowing the underwriting package to move efficiently through the process.

The Solution

With the engineering concerns resolved, Sweetwater Capital coordinated a streamlined HUD execution from application through closing.

Working closely with the client, we assembled the underwriting package and moved the transaction from engagement to HUD submission in approximately four months. Thanks to the client’s responsiveness and strong organization, the loan received its Firm Commitment in just 45 days after submission.

After receiving the commitment, the client elected to wait before locking the interest rate, allowing flexibility as market conditions evolved. The rate was successfully locked in May, and the loan closed in June.

Equally important, the client completed every repair identified during the engineering inspection process prior to closing. As a result, no repair escrows were required, allowing the client to receive the full cash-out proceeds immediately.

The Results

Loan Type: HUD Permanent Financing

Loan Amount: $10,005,300

Interest Rate: 5.40%

Term: 35 Years

Amortization: 35 Years

Structure: Cash-Out Refinance

Status: Closed with no repair escrows

Summary

The Greenbrier townhome community demonstrates how careful planning and proactive risk management can create an efficient path to permanent financing.

By evaluating every financing option, recommending an early engineering assessment, and maintaining a disciplined underwriting process, Sweetwater Capital helped transform the client’s first multifamily development into a long-term financial success.

The outcome included:

• A HUD loan structured for maximum cash-out proceeds
• A competitive 5.40% long-term fixed interest rate
• 35-year fully amortizing financing
• Firm Commitment received just 45 days after submission
• No repair escrows at closing, allowing the client to access 100% of available proceeds immediately

Through strategic planning, clear communication, and disciplined execution, Sweetwater Capital delivered a financing solution that positioned the client for long-term success while maximizing the value created through the development of Greenbrier.