Arbor Realty Originates $50M Refi for Chicago-Area Assets
Two recently renovated suburban Chicago properties built in the 1970s have received Fannie Mae refinancing following the conclusion of major value-add programs.
The Residences at 159 Tinley Park. Image courtesy of Arbor Realty Trust
The Residences at 159 Tinley Park and the Enclave Apartments, two multifamily properties located in suburban Chicago, have benefitted from $50.4 million in refinancing through the Fannie Mae Streamlined Rate Lock (SRL) loan program. The loan, funded by Arbor Realty Trust, features a 12-year fixed rate with full-term interest only. This is one of several recent deals undertaken by Arbor Realty Trust.
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The Residences at 159 Tinley Park
Located in the southwest suburban village of Tinley Park, The Residences at 159 Tinley Park is an apartment community build in 1976. Current occupancy stands at 98.1 percent, according to Yardi Matrix data. The property offers 208 one- and two-bedroom units ranging in size from 630 to 875 square feet and is comprised of two- and three-story structures.
Apartments feature stainless steel appliances, individually-controlled air conditioning, patios or balconies, open floor plans and, for an additional cost, detached garage parking. An outdoor swimming pool featuring an “aqua lounge” tops the amenity package.
Tinley Park is a family-focused village about 25 miles from Chicago that is among the fastest-growing suburbs southwest of the Windy City. The village is served by two stations on Chicago’s Metra commuter rail system to Chicago and is also located near Interstate 80. The village is adjacent or easily accessible to shopping centers, colleges, and the network of public parks that ribbon through the municipality.
Enclave Apartments
Enclave Apartments. Image courtesy of Arbor Realty Trust
Built in 1971, the Enclave Apartments is located in Chicago’s northwest suburban Hoffman Estates community. The property features 249 units, which include studios and one- and two-bedroom apartments ranging in size from 500 to 900 square feet.
Enclave Apartments’ current occupancy rate is 97.2 percent, Yardi Matrix data shows. Units offer individually-controlled air conditioning and patios or balconies. Hoffman Estates is served by Metra’s Schaumburg station, is near one of the world’s largest enclosed malls, Woodfield Mall, and is bookended by major forest preserves east and west.
Value-Add Strategies
The refinancing followed renovations at both properties that resulted from value-add programs. The loan ensures long-term, interest-only payments at a low rate. Director of Originations Ari Short at Arbor Realty Trust’s New York City office originated the refinancing.
“When a borrower is trying to remove interest rate risk as soon as possible, as is provided by the Streamlined Rate Lock loan product, the hurdle we face is gathering the necessary diligence, digesting it quickly, and getting any questions we have answered quickly in order to get comfortable committing a transaction on a truncated timeline,” Frank Lutz, executive vice president and chief production officer at Arbor Realty Trust, told Multi-Housing News. “Thankfully, this borrower was very hands on and able to help Arbor gain a strong understanding of the asset’s operations, the background of the sponsorship (and organizational) structure as well as future capital plans for the assets,” he added.
