Oak Grove Capital Closes $7.2M HUD 223(f) Refinancing Loan
- Dec 22, 2010
Shakopee, Minn.—Oak Grove Capital provided $7.2 million in funding for White Pines Apartments, a 124-unit multifamily facility in Shakopee, Minn. The HUD MAP 223(f) refinance was for a repeat borrower. Loan Officer Scott Streiff, from the firm’s headquarters in St. Paul, Minn., managed the transaction.
The loan has a 35-year term and 35-year yield maintenance. Loan-to-Value was 80 percent and the DSCR was 1.2 percent. The property, which was constructed in 2000 and consists of two buildings on 6.8 acres, was 94 percent occupied at closing.
It should be noted that the borrower also owns the award-winning real estate management entity that will service the property. The borrower’s management company has been actively overseeing multifamily complexes in the Minneapolis-St. Paul/Kansas City MSA for 20 years. It currently manages 3,500 apartment units and is known for its excellent costomer service and its ability to implement property improvements in a timely fashion.
“For the past several years, Oak Grove Capital has had a strong relationship with the borrower and its management entity,” says Loan Officer Scott Streiff. “We currently have 16 of their loans in our servicing portfolio and all of their properties are well maintained to ensure attractive living conditions for its renters.”
White Pines Apartments has 22 one-bedroom units, 96 two-bedroom facilities and six three bedrooms apartments. Within the last five years, $350,000 has been spent on property upgrades, including a new roof. Amenities include tennis courts, swimming pools and a children’s playground.