Key Takeaways
- • Silverstone Partners and JSB Capital Group closed HUD-insured Section 223(f) financing for the Midland Portfolio, four multifamily communities in Midland, Texas, according to a Business Wire press release.
- • The loan is fixed-rate for its full 35-year term, reducing exposure to refinancing and capital markets risk over the contemplated hold period.
- • Greystone provided acquisition bridge financing before transitioning the portfolio to permanent HUD financing.
- • The portfolio was acquired in December 2025 through a joint venture between Silverstone and JSB, and is near full occupancy.
- • The Partnership also leased the mineral rights associated with the portfolio at market-leading rates, adding income support and royalty participation.
Summary
Silverstone Partners, a thematic real estate investment manager, and JSB Capital Group have closed HUD-insured Section 223(f) financing for the Midland Portfolio, a set of four multifamily communities in Midland, Texas. The portfolio was acquired in December 2025 through a joint venture between the two firms, referred to in the announcement as the Partnership. Greystone provided acquisition bridge financing with a planned transition to permanent HUD financing, and the press release describes the transaction as a completed bridge-to-HUD execution.
The loan carries a fixed rate for its entire 35-year term. Silverstone Managing Partner and Founder Manoj Ramprakash said the firm locked its rate before market movement and that the long duration provides substantial certainty around borrowing costs over the contemplated hold period, despite the demanding HUD process. Silverstone views long-term HUD financing as the optimal structure for cash-flowing assets in strong-performing secondary markets because it significantly reduces refinancing and capital markets risk.
Bobby Svigals, Senior Vice President at JSB Capital Group, said the portfolio was acquired at an attractive basis with strong in-place cash flow and durable demand for large-format rental housing in Midland. Mindy Klugmann, Chief Credit Officer for FHA Multifamily at Greystone, described the deal as a seamless bridge-to-HUD execution that demonstrates Greystone's ability to finance investments from acquisition through permanent HUD financing.
The Partnership's thesis centers on high-quality multifamily assets in economically active markets, with a view that domestic energy production and power generation will remain a major focus of U.S. energy independence. The Partnership also executed agreements to lease the mineral rights associated with the portfolio at market-leading lease rates, providing additional income and royalty participation. The portfolio is at near full occupancy, and the company says recent entry by blue-chip real estate private equity investors into Midland-Odessa has validated the thesis.
The loan carries a fixed rate for its entire 35-year term. Silverstone Managing Partner and Founder Manoj Ramprakash said the firm locked its rate before market movement and that the long duration provides substantial certainty around borrowing costs over the contemplated hold period, despite the demanding HUD process. Silverstone views long-term HUD financing as the optimal structure for cash-flowing assets in strong-performing secondary markets because it significantly reduces refinancing and capital markets risk.
Bobby Svigals, Senior Vice President at JSB Capital Group, said the portfolio was acquired at an attractive basis with strong in-place cash flow and durable demand for large-format rental housing in Midland. Mindy Klugmann, Chief Credit Officer for FHA Multifamily at Greystone, described the deal as a seamless bridge-to-HUD execution that demonstrates Greystone's ability to finance investments from acquisition through permanent HUD financing.
The Partnership's thesis centers on high-quality multifamily assets in economically active markets, with a view that domestic energy production and power generation will remain a major focus of U.S. energy independence. The Partnership also executed agreements to lease the mineral rights associated with the portfolio at market-leading lease rates, providing additional income and royalty participation. The portfolio is at near full occupancy, and the company says recent entry by blue-chip real estate private equity investors into Midland-Odessa has validated the thesis.
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