TODAY’S DEALS: AFL-CIO Provides $33M for Minneapolis Construction
The AFL-CIO Housing Investment Trust provides $33 million for the construction of an apartment community; NorthMarq Capital negotiates a $34.5 million life company loan allowing for rate lock during the lease up period; and CBRE/NE arranges $16.1 million for a Massachusetts asset.
Minneapolis—The AFL-CIO Housing Investment Trust (HIT) has provided $33 million of pension capital funding for the construction of a 259-unit apartment community in Minneapolis known as Five 15 on the Park. The project, which has an estimated total cost of $52 million, is expected to generate about 260 union construction jobs. This is the HIT’s latest investment with mortgage banker Oak Grove Capital. The firm has helped finance 25 housing properties in Minnesota, working with both Oak Grove and its predecessor.
“Five 15 on the Park is just the kind of development that Minneapolis and this neighborhood have said they need,” says HIT Executive Vice President and Chief Investment Officer Stephanie H. Wiggins. “It represents sustainable, quality, affordable housing, well-connected to mass transit so that people have better access to jobs and services and community amenities. We are very pleased to help make this project a reality.”
The property will be located in the Cedar-Riverside neighborhood on the edge of downtown Minneapolis. Half of the new units will be affordable, with the remaining apartments available at market rate. Ground-floor commercial space will include a neighborhood community center, child daycare center and a healthcare facility.
Five 15 on the Park is located directly across the street from historic Riverside Plaza, an iconic apartment community that recently completed a substantial rehabilitation with help from $50 million in HIT financing. The 1,303-unit Riverside Plaza development has been a major source of affordable housing for city residents for over 35 years.
NorthMarq negotiates a $34.5M life company loan allowing for rate lock during lease up
Minneapolis—Dan Trebil, senior vice president/senior director of NorthMarq Capital’s Minneapolis based regional office, arranged a $34.5 million refinancing of 7west Apartments, a property consisting of 218-units located at 1800 Washington Avenue South, Minneapolis.
The transaction was structured with a 15-year term and 30-year amortization following two years of interest only. Financing was arranged by NorthMarq for the borrower through its relationship with a correspondent life company.
The borrower’s objective was to lock in a long-term interest rate as early as possible. This loan allowed them to achieve that goal early in their lease-up period and well in advance of fully stabilized occupancy.
CBRE/NE arranges $16.1M for Massachusetts asset
Chelmsford, Mass.—CBRE/New England’s Capital Markets team has secured acquisition financing totaling $16.1 million for the purchase of The Meadows, a 180-unit garden-style asset located in Chelmsford, Mass. The buyer was a joint venture between Taurus Investment Holdings and Water Street/PhilMor Real estate Investments, both of Massachusetts. The sales price was an even $20 million.
“The acquisition of The Meadows is a follow-on transaction to the 2013 purchase of Cabot Crossing in Lowell, MA,” says Taurus Investment Holdings’ CEO Peter Merrigan. “Both properties represent quality Class B assets located within one of I-495’s strongest job markets. Taurus and Water Street/PhilMor will look to build off the previous owner’s success with the assets by making a strategic capital investment into each of the properties.”
CBRE/NE’s First Vice President of Multi-Housing Debt & Structured Finance, John Kelly, worked on behalf of Taurus and Water Street/PhilMor to secure the financing.
The community, located approximately 1.5 miles from I-495, was constructed in 1987 with an average unit size of 668 square feet. The Meadows consists of 10 three-story buildings with a unit mix of 18 studio, 42 one-bedroom/one-bathroom and 120 two-bedroom/one-bathroom units. There are 375 parking spaces at the property.