NorthMarq arranges $ 73M financing for Midwest portfolio
NorthMarq has secured $ 73.2 million in combined FHA debt to recapitalize a portfolio of three properties in the heart of the country. The debt was guaranteed on behalf of Monitor Finance.
The portfolio’s multi-family communities, representing a combined total of 721 residences, are located in Omaha, New Brunswick, and in the Des Moines suburb of Norwalk, Ia. FHA debt is encumbered in common, making properties eligible for HUD’s 223a7 refinance program. The program gave the developer the ability to lower their coupon rate, expand amortization, and improve real estate cash flow by reducing debt service obligations. The loan amount range has increased from $ 16.5 million to $ 34.9 million. The structure of each loan had the usual term and amortization period of 35 years.
These three transactions represent the completion of the closing of a larger portfolio of eight properties. They follow the $ 89 million in funding secured by five properties for the sponsor late last year.
“HUD remains extremely busy after having a record year of production, with extended closing times in most HUD regional offices,” said Brett Hood, general manager of the NorthMarq Chicago office. Multi-unit news. “Because the subject portfolio consisted of all existing HUD transactions, the sponsor was able to execute through a 223a7 program, which saved a considerable amount of time. Each loan was recast for a term of 35 years, which allowed the borrower to save substantial interest. The original loans carried coupons of around 4%, while the new loans closed in the low range of 2%. “
Two portfolio properties, Torrey Pines and Old Market Lofts, are located in Omaha. The first is 23 years old and offers 264 one and two bedroom floor plans. Units include balconies or patios, washers and dryers, and in some residences, fireplaces. Among the notable amenities at Torrey Pines are two swimming pools.
Old Market Lofts was built in 1901 as a six-story produce warehouse in downtown Omaha. It was redeveloped in 2002 as a 265 unit apartment building comprising one and two bedroom residences and shops on the ground floor. Units have balconies or patios, vaulted ceilings, exposed brick and beam ceilings, and large walk-in closets. A rooftop patio tops the list of amenities.
The third property is High Pointe in Norwalk, Iowa. Built in 2000, the 192-unit multi-family community includes one, two and three bedroom apartments. Above-standard ceiling heights, washer-dryers, microwave ovens and high-speed Internet access are offered. One of the property’s main amenities is a fitness center.
Earlier in March, a NorthMarq Report revealed that investors continue to have an appetite for manufactured homes.