Downtown St. Louis Luxury Communities Land $26M in Financing
- Apr 03, 2017
By Mihaela Coste
St. Louis—Meridian Capital Group has recently secured an acquisition loan in the amount of $26.2 million on behalf of Strategic Properties of North America for the acquisition of The Tower and The Lofts at OPOP. The two luxury multifamily communities are located at Old Post Office Plaza in prime downtown St. Louis and contain a total combined of 181 units.
Managing Director Shaya Ackerman, Senior Vice President Shaya Sonnenschein and Alex Izso, associate of Meridian’s New York City office arranged both of the transactions. The 10-year loans feature fixed rates of 4.79 percent and 4.84 percent and five years of interest-only payments.
Located at 411 N. 8th St., The Tower at OPOP was completed in 2010, being the first new multifamily construction in downtown St. Louis in over 50 years. The 25-story asset offers 128 luxury apartments with one- and two-bedrooms and unique live-work spaces. Amenities include a club house, business center, in-unit laundry, valet parking, fitness center and concierge services. St. Louis Convention Center and Busch Stadium are situated in close proximity to the property as well as numerous restaurants, bars and retail options.
According to Yardi Matrix data, The Tower at OPOP is subject to a $20 million loan held by Citibank. The borrower acquired the property from North American Properties for $27 million, or nearly $220 per unit in March 2017.
The Lofts at OPOP offers 53 luxury apartments with one- and two-bedrooms, penthouse apartments and unique live-work spaces. The property located at 911 Locust St. is a fully rehabilitated historic building, featuring amenities such as fitness center, laundry facilities and on-site maintenance.
“Both properties’ prime locations and high-end amenities make these attractive assets for the borrower and the lenders, which helped in negotiating favorable terms,” said Ackerman in a prepared statement. “Meridian was able to secure long-term fixed-rate financing even though the properties were not yet stabilized,” he added. “The high-leverage loans and the below 5.00% interest rates, with five years of interest-only payments, represent market-leading financing terms that allow the sponsor to maximize the return on its investment.”
Image courtesy of Meridian Capital Group