$29M Earmarked for MN Financing
- Jul 11, 2017
Grandbridge Real Estate Capital has arranged $29 million in first-mortgage financing for construction of a 110-unit multifamily community in St. Louis Park, Minn.
“The property will be a very high-end, Class A multifamily building with all the amenities including a pool, hot tub, community room, fitness center and luxury interior finishes,” Tony Carlson, Grandbridge’s Minneapolis-based vice president, told MHN. “The property is conveniently located in close proximity to uptown and along the future Southwest LRT.”
Funding for the fixed rate nonrecourse loan was provided through FHA’s 221(D)(4) loan product. According to Carlson, proceeds will be used to construct the property before converting to permanent.
“This combination construction and 40-year permanent loan features a long-term and fixed rate,” Carlson said. “The borrower benefits from the ability to lock rate for the entire loan term before construction commences. In addition, the loan is non-recourse throughout the term, including during construction.”
A subsidiary of Branch Banking and Trust Company, Grandbridge Real Estate Capital has a servicing portfolio of $31 billion and provides asset and portfolio management nationwide for all capital providers including Freddie Mac, Fannie Mae, Ginnie Mae, insurance companies, banks and more than 250 securitizations.
According to Colliers most recent multifamily report, Q1 2017 transactions are trending above $250M in sales volume and activity is keeping pace with expectations from the past two years. Colliers projects to see more than 5,000 units in the development pipeline this year, placing multifamily new delivery at its highest point during the current cycle.