The Property 

The Augustan is a 136-unit, newly constructed multifamily community with retail and 2 data centers, located in Augusta, Georgia. The borrower is a repeat client with a long-term vision and a strategic plan to stabilize and secure the asset through HUD-insured financing.

The property had recently completed construction and was in lease-up when we began discussions. With no major repairs needed, the goal was to transition into a 35-year HUD loan that offered fixed-rate, fully amortizing debt at a time when market volatility was increasing.

The Challenge 

When we initially evaluated the deal in January 2025, occupancy was at just 78 percent. That posed a potential issue, as HUD requires properties to demonstrate strong and stable occupancy levels before accepting an application.

We were racing two clocks — one for lease-up and the other for a potential federal government shutdown that could delay or derail the timeline. Additionally, the borrower had to decide whether to pursue maximum leverage or accept a fixed loan amount based on their risk tolerance and long-term strategy.

The Goal 

The borrower’s objectives were clear:

• Secure a long-term, fully amortizing loan
  
• Lock in a low, fixed interest rate
  
• Refinance out of short-term construction financing
  
• Maintain flexibility while eliminating refinance risk
  
• Complete closing before any delays from a government shutdown

The Solution 

We took a proactive, phased approach to keep the deal on track:

• Initiated the application process while the property was still leasing, knowing the full process could take months
  
• Worked in sync with the borrower’s leasing team to track and report real-time occupancy gains
  
• Maintained tight due diligence coordination so the file would be ready for submission as soon as the occupancy threshold was met
  
• Guided the borrower through financing options, ultimately selecting a fixed $18,500,000 loan over maximum leverage
  
• Accelerated legal documentation and submission to HUD ahead of the government shutdown

The entire strategy hinged on timing and preparation — by the time occupancy reached 95 percent, our file was complete and ready to go.

The Results 

We achieved full approval and a successful closing:

• Loan Amount: $18,500,000 

• Term: 35 years 

• Structure: Fully amortizing 

• Timing: Commitment secured in August 2025, legal package submitted ahead of shutdown, and closed October 28, 2025

Why It Matters 

This refinance demonstrates the importance of starting early and managing risk throughout the process. While other lenders may hesitate during lease-up, HUD offers unmatched long-term stability when timing is right and execution is sharp.

For borrowers with new construction, early coordination can make the difference between missed opportunities and long-term success.

Summary 

The Augustan refinance illustrates the value of a forward-thinking approach. By starting during lease-up, committing to a well-defined strategy, and navigating a tight timeline, we closed a $18,500,000 loan with 35-year amortization.

The result? Long-term stability, full proceeds, and a borrower positioned for continued growth with HUD as a financing partner.

The takeaway is simple: in HUD lending, early action and clear strategy unlock powerful results.