Saxony Capital has received a $7.5 million Freddie Mac OptigoSM Small Balance Loan to refinance a 17-unit mixed-use apartment community in Chicago’s Wicker Park neighborhood.
Capital One provided the 20-year hybrid-rate loan that has a fixed rate for the initial five years and a floating rate thereafter. Interest-only payments will be made during the first five years, followed by amortization on a 30-year schedule. Vincent Punzi, a vice president with Capital One Multifamily Finance, originated the transaction. It is the fifth Freddie Mac SBL that Saxony has secured through Capital One. Freddie Mac’s SBL program offers a streamlined, low-cost financing option for acquisition and refinance of small rental properties. The agency provides loans ranging from $1 million to $6 million in all markets and between $6 million and $7.5 million for properties with 100 units or less in top and standard SBL markets.
Saxony Capital, led by Principal Josh Mintzer, has purchased and refurbished a series of properties in the Wicker Park neighborhood for the past several years. Together with another sponsor, the firm owns and manages more than 700 units in the Chicago market.
The firm acquired the property in January 2018 and embarked on a gut renovation. In addition to creating nine new units, the owners installed new appliances, flooring, cabinets and countertops, and replaced windows and modernized the street-level retail space. Located about two miles from downtown Chicago, Wicker Park attracts young professionals attracted to the public transportation and abundant dining and entertainment options.
Punzi, in a prepared statement, credited Saxony’s commitment to the neighborhood and cited its history of transforming vintage real estate into profitable properties.
Capital One’s Latest Deals
Capital One has remained busy this summer. Recent deals included securing a $23.5 million Freddie Mac acquisition loan in August to help Positive Investments purchase Sagewood Gardens, a 162-unit age-restricted community in Hacienda Heights, Calif., from Benedict Canyon Equities for $33.6 million, according to Yardi Matrix data.
In July, Capital One Multifamily Finance’s Atlanta office secured $35.1 million in financing from Freddie Mac’s Green Program for Investors Management Group to buy Amber Mill Apartments, a 264-unit Class B community in Duluth, Ga.
A month earlier, Capital One originated $12.6 million in acquisition financing through Freddie Mac for Interwest Capital Group towards the purchase of The Lennox, a 100-unit luxury community in Las Vegas, from WGH Partners. RSE Capital Partners provided equity capital for the $20.6 million deal as well, according to Yardi Matrix data.