BWE Secures $26.6 Million HUD Loan for Multifamily Project in Casa Grande, Arizona

BWE Secures $26.6 Million HUD Loan for Multifamily Housing at The Lofts at G Diamond Ranch

BWE, a prominent player in the commercial and multifamily mortgage banking sector, recently made headlines by securing a substantial $26.6 million loan under the HUD 221(d)(4) program. This financing will facilitate the construction of The Lofts at G Diamond Ranch, a 120-unit Class A market-rate apartment complex situated in Casa Grande, Arizona.

The announcement, made on February 5, 2025, by BWE’s Senior Vice President Lilla Abegg-Swanson and Executive Vice President James Swanson, highlights the strategic partnership between the company and the U.S. Department of Housing and Urban Development (HUD). The loan, which provides a combination of funding for both construction and permanent financing, is particularly favorable due to its fully amortized 40-year term and non-recourse nature, making it fully assumable.

According to Andrew Edelstein, Senior FHA Underwriter, the HUD 221(d)(4) program stands out for its exceptional leverage capability, currently allowing up to 87% loan-to-cost for market-rate projects. Additionally, the transitional structure of payment during the construction phase—where the borrower is tasked with paying interest only—positions this financing option as superior to alternative sources available in the market.

Property Overview

The Lofts at G Diamond Ranch is strategically located in the northern portion of Casa Grande, an area thriving with developing real estate and corporate investments. This multifamily project is part of a comprehensive Planned Area Development (PAD), which integrates housing with complementary urban infrastructure. With prime positioning between Phoenix and Tucson, Casa Grande is witnessing significant growth in rental demands, making this development crucial to meet local housing needs.

Planned as a community enhancement, The Lofts will feature twenty two-story, garden-style buildings, housing a mix of two- and three-bedroom apartments, efficiently designed to cater to various tenant needs. Each residential structure is L-shaped, consisting of six units distributed across two floors.

Modern Amenities and Features

Noteworthy amenities at The Lofts include aesthetically pleasing communal areas replete with shaded courtyards, a well-equipped clubhouse with a fitness center, and a designated children’s play area. A swimming pool and spa will provide ideal spots for relaxation. Each apartment will be outfitted with modern features such as stainless steel Energy Star appliances, ceiling fans, granite countertops, and in-unit washer/dryers. The emphasis on luxury extends to the design with LVT flooring and enhanced storage through floor-to-ceiling cabinets.

To elevate the living experience, all units will offer private, shaded balconies or patios, enhancing the outdoor enjoyment of residents. The overarching design and construction of the property will adhere to Energy Star Multifamily standards, thereby qualifying for the 'Green' reduced Mortgage Insurance Premium (MIP) as indicated by BWE's specialized FHA team.

About BWE

BWE prides itself on being a full-service national commercial and multifamily mortgage banking firm. With a commitment to prioritizing clients' financial ambitions, BWE offers comprehensive capital solutions backed by deep local market insights across its more than 40 operational offices. The company continuously aims to elevate the standards of real estate financing in the industry, providing high-quality service and support to all its clients.

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