HUD-Financed Deals

Conventional financing for multifamily development may still be  three years away, according to Encore Multi-Family, which helps explain its choice to build a HUD-finance driven  platform. President Brad Miller thinks it's a niche to go into the suburban and secondary markets where "HUD would be interested in putting a newer product in a market where economic indicators are positive." Encore is teeing up a core group of sites that were approved by HUD in Tulsa,Texarkana, and Temple, and has another under construction in Corpus Christi.
The Encore on Alsbury project in Burleson closed June 29 and broke ground the next day. Located on Alsbury Road at Highway 731, the HUD 221(d)(4) project is Class B but isn't subsidized, Pat says. The company is building a team from conventional backgrounds accustomed to a market-rate product but processing through 221(d)(4). With most projects kept to about 200  units, Brad says they target sites where they can take adjacent land to expand to 300 units when possible. Encore's IRR for multifamily is around 20%, he tells us.

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Related Topics: Brad Miller , Encore Multi
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