More Loans Available for Green Multifamily Properties

Apartment properties are worth more money if they are sustainably designed—and lenders and property buyers are finally beginning to offer terms that reflect that value.

The evidence is just beginning to pile up. For example, the underwriters at Fannie Mae recently began to offer larger loans and lower interest rates to sustainably developed apartment properties

In April, Fannie Mae closed the first loan under its Multifamily Green Building Certification Pricing Break program. It lent $10.2 million to the Station House, a 50-unit apartment community in Maplewood, N.J., that has earned a Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council. Fannie Mae rewarded the property with interest rate that is lower than usual by 10 basis points for the permanent loan. That will save the owners of the property, Prudential Real Estate Investors, $101,000 over the life of the loan.

Read the rest of the article at National Real Estate Investor.

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