Two Michigan Apartments Refinanced
- Jun 17, 2013
Ann Arbor, Mich.—In another example of borrowing cheaply while it’s still possible, two apartment properties near Ann Arbor, Mich., have obtained refinancing. The properties are located Ypsilanti and Pittsfield townships, and the Detroit office of Berkadia Commercial Mortgage LLC originated both loans, which totaled about $29.3 million.
The borrower, McKinley, a commercial real estate investment and management firm, secured $18.1 million for Evergreen Pointe Apartments on Woodland Hills Dr. in Pittsfield Township. The property includes 477 one-, two- and three-bedroom units, as well as a pool and picnic area. The 35-year, fixed-rate loan will be used to refinance existing debt on the property; it features a 2.9 percent interest rate and an 80 percent LTV.
The second property is Roundtree Apartments on Roundtree Blvd. in Ypsilanti Township, and was refinanced for $11.2 million. Roundtree Apartments features 228 one- and two-bedroom units, as well as a pool, sauna and on-site fitness center. The 35-year loan, which will be used to refinance the property, includes a 2.9 percent fixed-interest rate and an 80 percent LTV.
Berkadia senior vice presidents Ernie Katai, Pete Benedetto and Colin Callaghan worked with borrower McKinley to secure the loans through Berkadia’s FHA/HUD program. The Roundtree and Evergreen Pointe Apartments loans represent the 11th and 12th HUD financings Berkadia has completed with McKinley. To date, these FHA/HUD financings have totaled over $200 million.
According to the Mortgage Bankers Association, multifamily borrowing is still increasing, though it took a quarter-over-quarter dip in the first quarter of 2013. Compared with the first quarter of 2012, however, originations by dollar volume for multifamily properties increased 30 percent; only hotel lending was up more on an annual basis.