Advantages of Long-Term Fixed Rate Financing

Summary

1. Bravo Capital’s HUD financing products 2. Two greatest benefits to HUD financing

Bravo Capital’s HUD financing products

All of Bravo Capital’s HUD financing products are fixed rate, non-recourse and fully amortizing; please see the following examples:

Section 223(f) Acquisition or Refinance: 35 year term, fixed rate fully amortizing
Section 221(d)(4) Construction Loan: I/O during construction term, followed by 40 years fixed rate fully amortizing
Section 223(a)(7) HUD Expedited Refinancing: Term can be recast to the lesser of 12 additional years and the original loan term.

‍

Generally, property value rises over time, but even more enticing are investment opportunities before an intense inflationary period. In an era of rising prices and falling value of the dollar, property investment helps bolster wealth in a way that holding money cannot. And while loans that have floating rates fail to protect investors from spikes in interest-rate, all HUD ensured borrowers have the unique advantage of fixed lowest-in-market rates for the longest duration.

‍

Over the past few months, there has been rising concern over inflation following trillions in federal aid distributed during the pandemic. As the era of lockdown comes to an end, the primary damper on the economy has diminished, and in turn, signs of inflation have begun to surface, from rising food and gas prices to upward shifts in property value. While some of these expenses are incurred daily, others like buying property are longer term commitments. Currently, interest rates are particularly low, enabling investors to lock into loans with favorable terms for assets that will undoubtedly appreciate substantially in the coming years.

‍

Two greatest benefits to HUD financing

Among the most desirable loans for long-term, low-interest rate investments are those insured by HUD. More specifically, the two greatest benefits to HUD financing are the fixed-rate terms and the duration of the loans. With the 223(f) and 221(d)(4) products offering 35- and 40-year loan durations, respectively, this financing enables investors to lock into low rates for the longest duration. Nonetheless, each loan is fully assumable, ensuring that investors have the security of fixed rates without sacrificing on flexibility.

‍
Moreover, HUD interest rates are closely tied to the 10 Year Treasury, and the 10 Year Treasury has been particularly low in recent months. Accordingly, HUD interest rates have also been favorable, and put simply, this period prior to the onset of inflation stands as a remarkable time for investment.

You would also like

March 20, 2025

Bravo Property Trust Closes $36.75 Million Senior Construction Loan for Multifamily Project on Amsterdam Ave in Upper Manhattan

NEW YORK, Mar. 17, 2025 – Bravo Property Trust, an affiliate of Bravo Capital, today announced the closing of a $36,750,000 construction loan for a 78-unit mixed-use multifamily development on Amsterdam Avenue in Upper Manhattan. The neighborhood is known for its residential charm and attracts a prime tenant base, including families, young professionals, and students.

“This project aligns with our strategy of financing well-located, high-quality developments that add long-term value to the housing market,” said Aaron Krawitz, CEO of Bravo Property Trust. Echoing this confidence, Gabi Moshayev, Chairman of Bravo Property Trust, added, “We have strong confidence in the continued growth of Upper Manhattan and remain committed to structuring financing solutions that drive long-term value creation.”

The development will benefit from New York City’s 421a tax abatement program, securing a 35-year tax exemption in exchange for reserving 30% of units as affordable housing. In addition to residential space, the project will feature ground-floor retail, which has already been pre-leased.

Galaxy Capital’s Henry Bodek and Jonathan Ostroff arranged the transaction. “Galaxy Capital is proud to have arranged this $36.75 million construction loan from Bravo Property Trust, supporting Artifact Real Estate in bringing a premier luxury multifamily development to Hamilton Heights”, Jonathan Ostroff, Executive Director at Galaxy Capital, said in a statement. “This transaction reflects our commitment to securing strategic financing for transformative projects in New York City’s dynamic real estate market.

Future residents will enjoy premium amenities, including a fitness facility, tenant lounge, coworking space, and a landscaped rooftop deck. The residences will feature luxury finishes such as custom two-tone woodwork, Scandinavian lighting, polished chrome fixtures, and LED accent lighting, enhancing the modern living experience. Conveniently located near the 155th St. and 157th St. subway stations, multiple bus lines, and Citi Bike stations, the property offers excellent transit access.

About Bravo Property Trust: Bravo Property Trust is a leading bridge and construction financing platform, which, along with its affiliates, has closed over $1.6 billion in financing. For more information about Bravo Property Trust and its services, please visit https://bravopropertytrust.com/ or contact (212-729-4962).

March 14, 2025

$125MM Construction Loan in DUMBO Financed by Bravo Property Trust and Integritas Capital

Bravo Property Trust, in partnership with Integritas Capital, closed a $125M million senior construction loan in Dumbo for an office-to-residential conversion. Bravo Property Trust, a construction and bridge lending affiliate of Bravo Capital, originated and led the senior loan alongside Man Group.

“We are proud to finance best-in-class locations like Dumbo, and sponsors who have a decades long track record of consistent success,” Aaron Krawitz, CEO of Bravo Capital and Bravo Property Trust, said in a statement.

The property is an existing 8-story gut renovated office building that will be converted into multifamily rentals under the new 467m tax abatement program, with a new 11-story vertical condo development on top. The multifamily and condo portions will each have their own class-A amenity space including tenant lounges, outdoor space, and a fitness center. All units overlook the Brooklyn Bridge. Located on the border of Dumbo and Downtown Brooklyn, the subject is proximate to the F, A, and C subway lines offering direct access to Manhattan.

“Our platform is designed to deliver smart, strategic financing that drives transformative projects like this one. The Dumbo conversion is a prime example of revitalizing a top-tier location while creating high-quality housing in a market with strong demand,” Gabi Moshayev, Founder & Chairman of Bravo Property Trust, said.

New York City’s new 467m tax abatement program will provide the multifamily portion of the property with a tax abatement for 35 years in exchange for reserving 25% of units for low-income tenants. The abatement provides a 65% exemption for the first 30 years and drops 10% per year starting in year 31.

“At Integritas, we are among the few nationally to have converted office and other commercial buildings to residential in multiple cities under our equity strategy. This expertise supported our ability to close this large and complex loan quickly ” Stephen Palmese, Co-Founder and Managing Principal of Integritas Capital, said.

The completed project will be a landmark 19-story residential tower.

About Bravo Property Trust: Bravo Property Trust is a leading bridge and construction financing platform, which, along with its affiliates, has closed over $1.5 billion in financing. For more information about Bravo Property Trust and Bravo Capital and its services, please visit https://bravocapital.com/ and https://bravopropertytrust.com/ or contact (212-729-4962).

About Integritas Capital: IC is a vertically integrated private equity firm with a broad range of investments with a focus on commercial real estate private equity and private credit. Since 2004, Integritas Capital has been the direct developer or lead investor in $2.5 billion in real estate projects across ground up development, direct investment and preferred equity investment, the acquiring of non-performing loans and the origination of whole loans and mezzanine financing.

March 10, 2025

Bravo Property Trust Closes $65M Construction Loan for Jersey City Mixed-Use Development

Bravo Property Trust, an affiliate of New York-based commercial real estate private capital provider Bravo Capital, this week announced that they have closed a $65 million senior construction loan for a mixed-use development in Jersey City’s West Side submarket. Jacob Savitt originated the loan on behalf of Bravo Property Trust.

“This financing underscores Bravo’s strategy of working with experienced sponsors who have a proven track record of successful development in major MSAs,” Aaron Krawitz, CEO of Bravo Capital, the parent company of Bravo Property Trust, said in a statement.

The project will feature a 15-story, 218-unit Class A mixed-use building with strategic positioning in Jersey City’s rapidly expanding West Side neighborhood, which has seen a 48% population growth over the past three years. Located on Route 440, the site offers seamless access to major highways, public transportation, and key employment hubs, along with proximity to retail, dining, and Lincoln Park, enhancing its appeal to potential residents.

This development stands out as the only mid- to high-rise project in the area, thanks to unique zoning allowances that permit a height of 15 stories – significantly taller than the predominantly 5- to 6-story buildings in the vicinity. This height advantage provides unobstructed views and a commanding presence in the neighborhood. The project also includes a premium amenity package, featuring a rooftop pool, a distinctive and rare offering in the local market.

About Bravo Property Trust: Bravo Property Trust is a leading bridge and construction financing platform, which, along with its affiliates, has closed over $1.4 billion in financing. For more information about Bravo Property Trust and Bravo Capital and its services, please visit https://bravocapital.com/ and https://bravopropertytrust.com/ or contact (212-729-4962).