Grubb Properties Sells a Charlotte Mid-Rise

A Charlotte mid-rise trades for $31.2 million; Oak Grove Capital closes $17.9 million for three affordable acquisitions/rehabs; and BMC capital provides a $930,000 five-year bank loan.

Charlotte - QuartersideCharlotte—Grubb Properties has completed its disposition of a 184-unit luxury asset in Charlotte’s Uptown First Ward Neighborhood for $31.2 million. The mixed-use property, known as The Apartments at Quarterside, was picked up by three tenant in common entities, all affiliates of The Connor Group. ARA worked on behalf of Grubb Properties in arranging the sale of the community.

“As the urban core and Uptown Charlotte continue to thrive with tremendous population and  job growth, communities like Quarterside are ideally positioned to capture the quality renter looking for the urban living experience with walkability to major employment and entertainment,” says Dean Smith of ARA’s Carolinas team. Smith worked alongside Blake Okland, John Heimburger and Sean Wood in representing the seller.

Quarterside was built in 2009 and features ground floor retail. Amenities include a swimming pool, fitness center, business center, dog park and garage parking. The asset was 93 percent occupied at the time of sale.

Oak Grove Capital secures $17.9M for three affordable housing renovations

Lewis Park 1

Lewis Park

Minneapolis, St. Paul and Mankato—Oak Grove Capital has originated $17.9 million in FHA financing for the National Foundation for Affordable Housing Solutions. The loans will be used for the acquisition and substantial rehab of three affordable housing complexes in Minnesota. They are the Seward Square Apartments in Minneapolis, Lewis Park Apartments in St. Paul, and Eastport Apartments in Mankato.

As the lead lender, Oak Grove Capital worked with the borrower, HUD and other capital sources, to simultaneously close all three loans, each of which included tax exempt bonds, MHFA soft financing, and the use of Low Income Housing Tax Credits.

“We worked hard to lock in the low interest rate at a very aggressive level during a period of consistently rising rates,” says Ken Dayton, managing director of Oak Grove Capital’s St. Paul office. “Despite a tight timeframe, our deep relationships with HUD and MHFA helped us to facilitate the timely closing of these three very complicated loans, allowing the borrower to preserve the Project-based Section 8 housing.”

All three fixed-rate HUD 221(d)(4) loans carry a 12 month construction period, plus a 40-year term. Seward Square, an 81-unit Project-based Section 8 development, received $6.5 million of the financing. Lewis Park, a 103-unit Project-based Section 8 complex, received $7.8 million. The remaining $3.6 million went to Eastport Apartments, a 78-unit Project-based Section 8 community. The financing will be used to substantially renovate and preserve the three long-term affordable housing projects originally constructed in the late 1970s.

BMC capital provides $930,000, five-year, bank loan

Dallas—Brian Gramlich of BMC Capital’s Dallas office has arranged for a $930,000 loan for a multifamily property located in Kaufman, Texas. The loan featured a five-year fixed rate at 4.30 percent and a 25-year amortization.

BMC closed the loan in 35 days. The loan was arranged through one of BMC Capital’s correspondent banking relationships.