Suburban Chicago Multifamily Obtains $8.5M in Financing

Hawthorn Ridge Apartments, a multifamily community in Woodridge, Ill., has obtained an $8.5 million Section 223(f) loan. Naftali Schuss, an originator in Greystone’s New York office, arranged the financing.

Woodridge, Ill.—Hawthorn Ridge Apartments, a multifamily community in Woodridge, Ill., has obtained an $8.5 million Section 223(f) loan. Naftali Schuss, an originator in Greystone’s New York office, arranged the financing.

Greystone says it was able to get a firm HUD commitment in less than 60 days on the deal. Betsy Vartanian, head of Greystone’s FHA business, notes that the company is encouraging clients to refinance now, while rates are still historically low (though they have been edging up in recent weeks).

Located at 3211 Fox Street, the property has 176 units, comprised of one- and two- bedroom units. Community amenities include a pool and small park. Woodridge is a western suburb of Chicago, in DuPage County. The town has seen moderate population growth in recent years, with an increase of about 2,000 between 2000 and 2010, according to the Census Bureau.

Multifamily originations, at least as of the first quarter of 2013—the most recent quarter for which numbers are available—continue an upward trajectory, according to the Mortgage Bankers Association. Compared with the first quarter of 2012, multifamily originations were up about 30 percent, the MBA notes. That’s more than for any other property type except hotels.

“First quarter commercial and multifamily mortgage origination volumes were 9 percent higher than last year’s first quarter level,” Jamie Woodwell, MBA’s vice president of CRE research, explains. “The overall number masks larger increases in the dollar volume of loans originated for CMBS and Fannie Mae and Freddie Mac, and a decline in the amount originated for life-insurance company portfolios.”