PA Community Receives $9M Freddie Mac Loan
The borrower used the current loan to pay off debt service and prepayment penalty, while also recovering trapped equity, which will be reinvested into the apartment community.
By Tudor Scolca
Samuel Land Co. has obtained $9 million for the refinancing of Washington Gardens, a 179-unit community located in Carnegie, Penn. NorthMarq Capital arranged the 10-year loan through Freddie Mac, with a 30-year amortization schedule and two years of interest only.
Washington Gardens comprises two adjacent buildings, located at 834 Washington Ave. and 133 Lee St. It features 109 one-bedroom and 70 two-bedroom units, ranging in size from 832 to 1,220 square feet. Common amenities include a fitness center, community room, playground, swimming pool, 13 laundry facilities and 220 parking spaces.
The neighborhood features proximity to various shopping and dining options, towards either end of Washington Avenue. Carnegie Park and the Carnegie Elementary School are within walking distance, while downtown Pittsburgh is a 15-minute drive away. Major thoroughfares in the vicinity include interstates 376 and 79.
The property was previously subject to another, permanent loan originated by Hunt Mortgage Group in 2010. The $7.1 million sum was provided by Fannie Mae with an interest rate of 4.7 percent per annum, and would have matured in 2020.
“NorthMarq was able to help the borrower secure long-term financing with Freddie Mac with two years of interest only at an attractive rate before the increase in treasury rates. This allowed the borrower to pay off their debt service and prepayment penalty while also helping to recover trapped equity which will be reinvested into the property,” said Gary Cohen, senior vice president & managing director at NorthMarq Capital’s New Jersey office, in a prepared statement. Cohen worked on behalf of SLC to obtain the funds.
Image courtesy of Yardi Matrix