West Michigan Property Closes $25M Refi
Fannie Mae provided the loan.
River Birch Apartments, a 348-unit community located at 3454 French School in Caledonia, Mich., has landed a $25 million refinancing loan.
Walker & Dunlop arranged the transaction. The W&D team, supervised by Mary Stuart Hurst and Fletcher Dunn, partnered with Kari Zapolski of Inner Circle Holdings to arrange the early rate lock, 10-year loan provided by Fannie Mae. The loan stipulates five years of interest-only payments followed by a 35-year amortization schedule.
Yardi Matrix lists BDR Custom Homes as the owner and MG Prestige as the property manager. The same source shows that the property is also subject to a $17 million construction loan.
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Located in a south suburb of Grand Rapids, River Birch Apartments was completed in late 2022 and spans 18 buildings across 34 acres. Units range in size from 842 to 1,326 square feet and feature washer-dryers, above-standard ceiling heights, microwave ovens and high-speed internet access. Common-area amenities include a fitness center, business center, clubhouse, playground and outdoor storage. Located about 15 miles from downtown Grand Rapids, River Birch Apartments provides residents quick access to proximate retail, restaurants, parks and recreation.
Crossing the finish line
Given the current state of capital markets, arranging the loan proved to be a tough task. “Initially, the biggest challenge was financing the deal prior to stabilization,” Hurst told Multi-Housing News. “However, Fannie Mae approved the loan to be processed via their Near-Stabilization execution, which allowed us to underwrite stabilized operations.”
Hurst knew that the property needed a strong track record in order to land the funding. “The strong lease-up trajectory, tight market fundamentals and performance of the first phase of the project all helped us get Fannie Mae comfortable with this deal as a Near-Stab transaction. We were able to complete a Streamlined Early Rate Lock, allowing us to lock in the rate prior to completion of a full underwriting and taking the rate risk off the table,” Hurst added. Furthermore, River Birch Apartments’ Green Globes certification proved instrumental in securing competitive pricing and favorable credit terms from Fannie Mae, in spite of a daunting lending environment, Hurst said.
