TODAY’S DEALS: Johnson Capital Arranges $19M in Multifamily Loans

Johnson Capital arranges $19 million in two multifamily loans; Berkadia originates $42.36 million for an apartment high-rise; and Mortgage Equicap closes fiancning for two Queens, N.Y. apartment buildings.

The Charlestonian

Lake Charles, La.—Johnson Capital has arranged two multifamily loans totaling $18,738,000 for properties in Louisiana and Texas. A $13 million note was closed on a 224-unit multifamily property called the Charlestonian in Lake Charles, La. A $5.7 million loan was closed on a 120-unit multifamily property in Cleburne, Texas, called the Cleburne Terrace Apartments. Both loans were arranged by Robert Williams, a principal at Johnson Capital’s New York office.

A correspondent lender of Johnson Capital’s provided the loans through Fannie Mae. The loans provided some cash out to the owners and are at over 70 percent LTV. Each has a fixed interest rate, a 10-year loan term and a 30-year amortization schedule.

Each property is a garden-style complex consisting of one-, two- and three-bedroom units. Cleburne, located in Johnson County, is a suburb of Fort Worth, Texas, roughly 50 miles southwest of Dallas, with a population of approximately 30,000. Lakes Charles, La. is located in the southwest region of the state. It is the fifth largest city in Louisiana with a population of approximately 70,000.

“You have to act quickly in this rapidly changing environment to get transactions done,” says Williams. “We were able to close Cleburne and get a commitment for the Charlestonian within 42 days of submitting the application.”

Berkadia originates $42.36M for construction of Milwaukee high-rise apartments

The Moderne

Milwaukee–Berkadia Commercial Mortgage originated $42,357,800 in permanent, fixed-rate debt through its HUD/FHA program for the construction of The Moderne, a high-rise apartment building in Milwaukee. The 90 percent LTV loan features a 40-year term and 40-year amortization with a fixed interest rate of 5.11 percent.

When completed, the 30-story Moderne will have 203 rental units and 181 covered parking spaces in six above-ground levels and a lower level. Average monthly rents will range from $1,448 to $2,015.

The building, located at 1141 Old World Third Street, also will feature 7,344 square feet of commercial retail space on the first floor. The top three floors of the property will include 14 luxury condominiums that are being constructed with financing through the City of Milwaukee and are not included in the HUD/FHA loan.

Senior Vice President and Branch Manager Tom Sigrist of Berkadia’s Chicago HUD/FHA office originated the loan. The borrower was Milwaukee Moderne LLC.

“The Moderne is a beautifully designed building and will be a great addition to the Milwaukee skyline,” says Sigrist. “We have worked with the Milwaukee HUD office on various transactions for more than twelve years, and this was a unique transaction for them. Not only is the building a high-rise, but there is separate financing from the city for the condominiums.”

Rick Barrett of Milwaukee Moderne comments, “Berkadia provided superior service in this transaction. In addition to working with us on a daily basis, they met with representatives from the City of Milwaukee and other parties to get the deal closed.”

Mortgage Equicap arranges financing for Queens apartments

New York—Mortgage Equicap has arranged an $8.5 million 7-year fixed-rate mortgage for two apartment buildings in Queens, N.Y.

The owner wanted a 75 percent LTV mortgage giving him at least $5 million of cash-out proceeds after paying off a $3.5 million existing mortgage. The owner also wanted to lock a 7-year fixed-rate below 5 percent (at the time of the closing, the 7-year treasury yield had climbed to 2.85 percent). Mortgage Equicap arranged a 4.875 percent fixed-rate, non-recourse mortgage with a 30-year amortization schedule.

“We closed the loan with a regional balance sheet lender within 45 days. The lender was very knowledgeable of the local market and underwrote the asset thoroughly to get to a 75 percent LTV despite the high cash-out and below-market interest rate”, says Daniel Hilpert, managing director of Mortgage Equicap.

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