Dive Brief:
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Less than two months after it announced its Multifamily Green Building Certification Pricing Break, Fannie Mae closed the first deal this week under the program.
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The owners of the Station House, a 50-unit, mid-rise apartment building in Maplewood, N.J., will save more than $101,000 in interest payments over the life of its $10.1 million loan—originated by Wells Fargo—because it qualified for the program’s 0.10% interest rate reduction.
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The building has a LEED certification, one of the green certifications that can qualify a property for lower interest rates from Fannie Mae. The others are the Energy Star certification for multifamily and Innovation’s National Green Building Standard.
Dive Insight:
A Wells Fargo executive said in a statement that he expects more multifamily property owners to pursue green building certifications so they can take advantage of the Fannie Mae interest rate discount, which he called “a great incentive."
In addition to saving money on the loan, buildings constructed using established green standards have been shown to consume 25% less energy and 11% less water, and to cost 19% less to maintain.
