Monitor Finance Lands $89M Refi for 5 Properties

NorthMarq arranged the refinancing for the company’s portfolio of two assets in Kansas City, Mo., and three in Davenport, Iowa.
Alexis at Perry Pointe. Image courtesy of NorthMarq

Monitor Finance has taken advantage of the current interest rate environment and landed more than $89 million in combined FHA debt recapitalizing for its five multifamily properties. NorthMarq’s Brett Hood arranged the recapitalization of Monitor’s two properties in Kansas City, Mo., and three communities in Davenport, Iowa.

The five communities all qualified for HUD’s 223a7 refinance program due to having existing FHA debt. According to NorthMarq, the refinance allowed for lower interest rates, extended amortization and improved property cash flow with reduced debt cost for the property owner. The loans for the communities ranged from $8.8 million to $21.7 million, according to NorthMarq. Hood said in prepared remarks that the loan sponsor saw an opportunity for a rate reset and cash flow savings due to the current interest rate environment.

HIGH OCCUPANCY PORTFOLIO

The portfolio’s Kansas City properties include Bennington Ridge Apartments and Bennington Park Townhomes. The larger of the two, Bennington Ridge Apartments, has 288 units in one- and two-bedroom floorplans and was constructed in 2000 with a fitness center, pool and sundeck. Built much earlier in 1988, Bennington Park Townhomes offers 164 units in two- and three-bedroom configurations with amenities including a clubhouse, pool, fitness center and more. Hood told Multi-Housing News that the Bennington Ridge Apartments had a 98 percent occupancy rate while Bennington Park Townhomes was 95 percent occupied.

In Davenport, the portfolio includes Jersey Meadows, Ashford and Alexis at Perry Pointe. The 288-unit Jersey Meadows was constructed in 1985 with one- and two-bedroom units and offers its residents a dog park, fitness center, garage and laundry. Ashford offers 140 studio and one-bedroom units and was built in 2004 with a clubhouse, fitness center, Amazon hub and green space. Also constructed in 2004, Alexis at Perry Pointe has 192 units in one-, two- and three-bedroom floorplans and offers residents a pool, fitness center, dog park and more. Jersey Meadows was 93 percent occupied, while Ashford and Alexis at Perry Pointe were both 92 percent occupied, Hood told MHN.

Counting the five refinanced properties, Monitor Finance’s portfolio spans several states including Iowa, Missouri, Nebraska, North Dakota and South Dakota. The company also acquired seven properties in South Dakota in December 2019 from IRET.