Fannie Mae loan finances fractured-condo acquisition

Bella Terraza in Jacksonville

Greystone, a New York-based real estate lender, investor and adviser, provided a $12 million loan for a fractured-condo acquisition in Jacksonville.

Greystone arranged a $12 million Fannie Mae Delegated Underwriting and Servicing (DUS) loan for its client to finance the acquisition of 214 of the 250 units at a Jacksonville residential community called Bella Terraza.

Operating mainly as a rental housing complex, Bella Terraza is a so-called fractured condominium because 36 of the 250 units are owned by residents, the result of an incomplete conversion from rental units to condos.

Karen Motta, a spokeswoman for Greystone, told The Real Deal that Bella Terraza was built more than 20 years ago for renters.

“It was originally built as a rental property. Then the condo conversion began,” Motta said Fridaay.  But amid the housing market crash in 2008 and 2009, “that process ceased” and left a residential complex with a majority of renters and a minority of owner-occupants.

“The 214 units our client bought are rentals. The rest are individually owned and occupied,” Motta said. “He pays a maintenance fee for each of the 214 units. They are serving as rentals but they are individually owned condos.”