AGM Financial Services announces new financing for latest project with Castle Development Partners
BALTIMORE, Oct. 26, 2022 /PRNewswire/ — A $38,139,200 FHA-insured loan arranged by AGM Financial Services, Inc. will fund the construction of new multi-family housing on a formerly blighted, 11-acre site near the Restored Area of the City of Williamsburg, Va.
The 162-unit multi-family Governor’s Inn will be developed by Castle Development Partners, based in Charlottesville, VA. Richmond, Virginia-based Breeden Construction is the general contractor for this project.
Castle’s plans call for the demolition of a closed hotel with the same name. Located in an Opportunity Zone, the new Governor’s Inn will set aside 21 apartments at below market rates for income-qualified families.
“This plan will provide much-needed market rate and affordable housing, while respecting the character of the historic center of Williamsburg,” said Margaret Allen, founder and CEO of AGM Financial Services.
The Williamsburg project represents the latest in a series of projects developed by Castle in Virginia and North Carolina and financed by AGM.
“Governor’s Inn is a great example of the kind of projects that Castle develops – innovative in its redevelopment of an underutilized site, in its financing, and its attention to community needs and priorities. All of us at AGM are proud to work with the Castle team on the new Governor’s Inn and many of their other projects,” added Myles Perkins, AGM’s president.
“We’re very excited by the site’s walkability to so many amenities in Williamsburg –restaurants and shopping in Merchants Square, Colonial Williamsburg and the College of William and Mary. It’s a great opportunity to reposition a well-located site into high-quality housing that will benefit the community,” according to Andrew McGinty, head of operations management at Castle Development Partners.
Castle is a real estate partnership focused exclusively on the development and renovation of multifamily rental communities in the eastern United States. The company has projects in the development pipeline that are expected to begin construction in 2023 and 2024.
AGM is a private lender with a 22-year history of arranging federally insured mortgages for apartment projects under FHA’s MAP (Multifamily Accelerated Processing) program. A privately held lender, AGM has an annual transaction volume of $545 million and an average deal size of $20 million. Since AGM’s inception, the company has closed more than $7.4 billion in FHA-insured loans.
AGM offers fixed-rate, non-recourse loans for new construction or substantial rehabilitation pursuant to Sections 220, 221(d), & 231 of the National Housing Act and for acquisition or refinance of existing apartment communities pursuant to Section 223(f). The company finances supplemental renovation loans under Section 241(a); refinances of Section 202 properties; Section 223(a)(7) refinances of FHA-insured communities; and Interest Rate Reductions for existing insured loans.
Founded in 1990, AGM is a leading FHA lender and GNMA seller/servicer. From new construction and substantial rehab to acquisition or refinance — for both market-rate and affordable projects — AGM gets the deal done. Family-owned with over 30 years of experience, the firm has closed over $9 billion in FHA-insured multifamily project loans nationwide. We underwrite, fund, and service all of our loans. Developers and owners can count on AGM to be accessible, transparent, consistent, and ready to lend. From new construction to substantial rehabilitation to acquisition and refinance — for both market-rate and affordable projects — we can get the deal done. To learn more about AGM, call 800.729.4266 or visit agmfinancial.com.
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SOURCE AGM Financial Services
