Newmark arranges $45.9M FHA refi for two Grand Junction apartments
The HUD 223(f) loans move Four Points Funding's recently delivered assets into government-insured permanent debt.
Newmark has placed roughly $45.9 million in FHA-insured debt on two Class A apartment properties in Grand Junction, Colorado, according to Connect CRE. The loans are HUD Section 223(f) refinancings, a program designed for existing multifamily assets. The borrower, Four Points Funding, developed both projects, and Newmark's Kelley Klobetanz handled the assignment.
The two properties have different vintages. Nexus Apartments, a 122-unit market-rate community completed in 2024, pairs walk-up apartment buildings with townhome-style residences, and its amenity list includes a clubhouse, lounge, game room, community garden, barbecue area, and outdoor gathering spaces. The Eddy Apartments, a 96-unit property delivered in 2022, sits on the Colorado River with direct access to a riverfront trail system that connects to Las Colonias Park. Eddy residents also have shared-use privileges at the adjacent Camp Eddy RV park, which adds a clubhouse, fitness center, community room, and outdoor patio.
The financing covers 218 units. That works out to roughly $210,000 per door. At that size, this is a portfolio transaction in everything but name. Both properties are less than five years old, so the two refinancings are likely paying off construction-period debt and replacing it with government-insured permanent financing. For a developer in a secondary market, the FHA backing supplies a liability structure that conventional lenders seldom offer on a non-recourse basis.
PWD's records also include PGIM's $82.6 million bridge loan that freed the final property from a cross-collateralized Capodagli portfolio. Affinius closed a $177.25 million loan for two New York metro apartment purchases. Those loans are short-term and acquisition-oriented; the Grand Junction loans are permanent takeouts. FHA has an appetite for recently delivered Class A product in smaller metros, and Four Points developed and now refinances both properties. The government-insured structure leaves the developer with a liability on every unit.