Manhattan Portfolio Lands $78M Refi
The collection includes five properties.
The Downtown Apartments has secured a 10-year, $78.4 million refinancing package for a five-asset portfolio totaling 220 units in Manhattan, N.Y. Northmarq arranged the financing through its Fannie Mae DUS platform.
The debt comprised fixed-rate, full-term interest-only notes, aiding the owner in paying off existing loans, according to prepared remarks by Northmarq Managing Director Tom Peloquin, who led the team that arranged the Fannie Mae financing.
Tompkins Square Plaza, a 124-unit property completed in 1998, became subject to a $50 million loan—the largest share of the financing package. Santander Bank issued the previous debt in 2020 which amounted to $50.2 million, Yardi Matrix data shows. The community at 190 E. 7th St. encompasses two- to four-bedroom units ranging from 745 to 1,800 square feet.
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The Downtown Apartments received $15.5 million for the three assets at 516 E. 11th St., 163 Stanton St. and 57 Pitt St., which total 61 units. The property on Stanton Street recently received a facelift and features duplexes on the top floor. Additionally, the building on Pitt Street encompasses two commercial units as well.
Lastly, the borrower secured $12.9 million for the 35-unit community at 49 Ludlow St. The 2000-completed property features terraces and a roof deck, among other amenities.
The five mid-rise buildings are on the Lower East Side, within about 2 miles from one another. Several subway stations and parks, as well as New York University, can be found within roughly 3 miles from the collection.
GSEs’ road to privatization
Though talks of privatizing Fannie and Freddie hang in the air, hurdles remain. One point to iron out is the senior preferred stock purchase agreements, which concern the federally owned senior shares.
A way of handling the issue revolves around restructuring the agreement, Bill Killmer, chief lobbyist & senior vice president for legislative and political affairs at the Mortgage Bankers Association, previously told Multi-Housing News. He considers that Congress ought to issue a permanent, paid-for federal government backstop for MBS, including multifamily.
Another issue relates to the capitalization required to take the government-sponsored enterprises private, which was estimated to be in the $300 billion range as of November 2024. Back then, the GSEs’ capitalization was under $150 billion, hardly half that.
Northmarq’s Fannie Mae dealings
Meanwhile, capital continued to flow. In December, Northmarq’s Fannie Mae DUS platform arranged acquisition financing for The Brookview Cos.’ purchase of Forte at 84South, a 268-unit asset in Greenfield, Wis. Fiduciary Real Estate Development Inc. sold the property for $57.7 million.
That same month Northmarq also arranged the Fannie Mae acquisition financing for Mesa Capital Partners, which amounted to $43.3 million. The investor bought Taylor Farms, a 276-unit asset in Charlotte, N.C., from Thompson Thrift.
