JLL Secures $13M Freddie Mac Loan for Minnesota Community
The financing is for the acquisition and renovation of Northgate Plaza, a 151-unit affordable property in Rochester, Minn.
By Adriana Pop
Rochester, Minn.—Working on behalf of New Northgate Plaza LP, JLL’s Capital Markets team has secured $13.4 million in acquisition and rehabilitation financing for Northgate Plaza, a 151-unit affordable community located in Rochester, Minn. The loan is a Freddie Mac Immediate Tax Exempt Loan. Titan Development & Investments will serve as the project’s developer.
902 11th Ave Nw, Rochester, Minn.
Vice President Pat McMullen led the JLL team on the transaction.
The 16-year term loan has a 35-year amortization schedule with a 90 percent loan-to-cost ratio. In addition, the borrower received 4 percent Low Income Housing Tax Credits (LIHTC) from the State of Minnesota and tax-exempt bonds from the City of Rochester. The borrower obtained a 20-year Housing Assistance Payments (HAP) contract renewal with mark-to-market rents.
The renovation of Northgate Plaza at 902 11th Ave., will include new elevators, boilers, air conditioning units, windows, kitchen and bathroom cabinets, common area flooring and exterior brick work.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. In 2015 alone, the firm completed $140 billion in investment sale and debt and equity transactions globally. The JLL Capital Markets team comprises more than 2,000 specialists, operating all over the globe.
Image via Google Street View
