Oak Grove Provides $55.6M for Three Twin Cities Properties
- Jul 31, 2013
St. Paul, Minn.—Oak Grove Capital has originated three HUD 233(f) loans totaling $55.6 million. The loans, provided to Bigos Management, were used to refinance three market-rate assets in the Twin Cities metro area. Each of the three fixed-rate loans carries a 35-year term and amortization period.
Eden Commons, located in Eden Prairie, Minn., received $17.6 million of the financing. The property contains 196 units. Mallard Creek, located in Golden Valley, Minn., received $13 million. The property contains 122 units in a two-wing, three story building. The remaining $24.9 million was used for Mears Park Place, a 298-unit building in St. Paul, Minn. All three communities also offer common area amenities, including swimming pools, fitness rooms and tanning centers.
“Oak Grove is proud to have been involved with these financings. All three buildings are in excellent locations and condition,” says Ken Dayton, managing director of Oak Grove Capital’s St. Paul office. “We were able to provide long-term, fixed-rate financing within five months from the time Bigos signed the application to the day we closed.”
Toronto-based Starlight buys 216-unit Dallas-area asset
Dallas—Toronto-based multifamily investor Starlight U.S. Multi-Family Core Fund has acquired Greenhaven, a 216-unit, garden-style, Class A community located in McKinney, Texas, a growing area in North Dallas. The 2009-built asset carried a $23.5 million price tag. The fund obtained a $16.5 million interest-only first mortgage payable at LIBOR +2.125 percent in connection with the acquisition. Pinnacle Family of Companies was handed the management contract.
The property is North Texas’ first silver certified LEED for Homes Multi-Family Garden Community. It consists of 10, two- and three-story walk-up buildings on an 11.2-acre site. As of June 30, Greenhaven boasted a 97.7 percent occupancy. Amenities include a central clubhouse with a 24-hour fitness center, resident lounge with large-screen television and coffee bar, a business center, and a club room with a billiards table. Outdoor amenities include a swimming pool with sundeck, a 2,000-square-foot enclosed pet park, and a landscaped courtyard with barbecue areas.
Following the acquisition, Starlight U.S. Multi-Family Core Fund has 956 recently constructed, Class A, stabilized multifamily units located in Dallas-Fort Worth and Houston.
NorthMarq arranges $19.5M mortgage for refi, use conversion of seniors housing
Tacoma, Wash.—Stuart Oswald, senior vice president and managing director of NorthMarq’s Seattle regional office, arranged first mortgage refinancing of $19.5 million for The Weatherly Inn, a 140-unit senior housing community located in Tacoma, Wash. NorthMarq arranged this financing for the borrower, a Washington-based LLC, through its seller-servicer relationship with Freddie Mac.
This transaction was an early refinance of an existing Freddie Mac loan with a new Freddie Mac loan. The ownership group developed the first phase of this project in the late 1980s and a second phase in the mid-1990s. A portion of the loan proceeds will be used to convert several independent and assisted living units to memory care units. The borrower will also be able to utilize Freddie Mac’s acuity mix-conversion program which allows for further changes to the level of care unit mix as market demand changes over the term of the loan.
“NorthMarq is looking to grow our Freddie Mac senior housing production and we are very pleased to have been given the opportunity to handle this transaction for the owners,” Oswald says.