Refinancing a 550-Unit Property

By Keith Loria, Contributing Editor

Hoffman Estates, Ill.—Walker & Dunlop Inc. has closed a $50 million loan for Greenwood Capital Investment’s refinancing of Autumn Chase Apartments, a 550-unit property located in Hoffman Estates, Ill.

“Based on Greenwood’s outstanding track record operating this asset for many years, they were able to access the equity they had accumulated in the project to grow their multifamily development platform,” Will Baker, Walker & Dunlop’s managing director, said. “Our outstanding relationship with Fannie Mae and TSB Capital Advisors enabled a seamless transaction.”

As part of the financing, Walker & Dunlop teamed with TSB Capital Advisors to obtain a waiver whereby Fannie Mae agreed to lend up to 80 percent of the property value on a cash-out refinance.

The transaction was underwritten with a 10-year term including 9.5 years of yield maintenance and a 30-year amortization schedule. Greenwood Capital Investment will use some of the proceeds toward future multifamily development opportunities.

Originally constructed in 1973, the garden-style community offers studio and one- and two-bedroom apartments. Community amenities include a controlled intercom entry system, garages with automatic door openers, an outdoor swimming pool with sundeck, private picnic area and a tennis court.

The property is located in a Northwest suburb of Chicago, situated near the headquarters for Sears Holdings Corporation, the Midwest headquarters for AT&T and the American headquarters for Mori Seiki.

Autumn Chase Apartments has an average occupancy rate of 95 percent since the borrower took ownership and repositioned the property.