Today, MidHudson LLC announced that in the third quarter it funded over $14 million in Working Capital and Initial Operating Deficit Reserves through its HUD Reserve Funding Product.Those Reserves supported multifamily development projects with an aggregate value of just under $200 million. The developments are located in Miami and Lakeland, FL as well as in Ft. Worth, TX and Omaha, NE. In addition to the investments closed in Q3, MidHudson executed letters of intent for an additional $35 million in Reserves for projects expected to be valued at $225 million.
MidHudson President Joseph Carroll stated, “It is gratifying to see the market acceptance of our product. Dan Ford, our Head of Origination, has done a great job building relationships with sponsors and HUD lenders. Through hard work and a commitment to integrity, we have leveraged those relationships to develop a reputation for certain and simple execution. We look forward to finishing the year strong and building on that for next year.”
MidHudson satisfies reserves required for HUD financed developments without diluting the sponsor’s ownership stake. The product reduces the amount of common equity required for a project and, as a result, raises equity returns. Further information on MidHudson is available at www.MidHudsonRE.com.
MidHudson is a specialty finance firm focused exclusively on projects and developers that use FHA senior debt. Its HUD Reserve Funding Product satisfies the reserve requirements for developers using HUD 221(d)(4) financing.
