TODAY’S DEALS: NorthMarq Capital Arranges $21.8M Mortgage through Life Insurance Company
NorthMarq arranges $21.8 million in mortgage financing; HFF secures a $17.2 million refinance loan; and Marcus & Millichap arranges the sale of a 144-unit asset in Cleveland.
McKinney, Texas–Jeff Frankel, senior vice president and senior director in NorthMarq Capital’s Chicago Regional office arranged first mortgage financing of $21.84 million for Alexan Parkway Apartments, a 379-unit multifamily complex located at 6653 McKinney Ranch Parkway in McKinney, Texas.
Financing was based on a five-year term and a 30-year amortization schedule with the first three years interest-only and was arranged for the borrower by NorthMarq through its correspondent relationship with a Midwest-based life insurance company.
“This was the eleventh transaction closed between lender and borrower. Transaction was closed 24 days after application execution,” states Frankel.
HFF locks in $17.2M refinancing for San Ventura Apartments
Chandler, Ariz.—Holiday Fenoglio Fowler has secured a $17.18 million refinancing loan for a 272-unit, Class A garden-style multi-housing community in Chandler, Ariz. The firm worked on the behalf of ColRich Investments, placing the seven-year, 5.07 percent fixed-rate loan through Freddie Mac.
“HFF’s creative approach to close the deal included working diligently with Colrich to obtain an early rate lock commitment to avoid rising interest rates,” says Danny Gabriel, president of ColRich Investments.” In addition, HFF was able to buy down the rate to increase proceeds, which according to Freddie Mac was the first buy down they had seen in 2011.”
San Ventura Apartments is comprised of 34 two-story buildings with one-, two- and three-bedroom units averaging 967 square feet. The property was built in 1995 and was renovated in 2006, with individual units receiving renovations as they turn over. The 97 percent leased community includes two resort-style pools, a fitness center, sand volley ball court, barbeque area and gated access. The apartments are near Motorola and Intel, two of the area’s major employers, says Adam Cole, a director at HFF who represented the borrower.
ColRich Investments is a 30-year old San Diego-based real estate and investment firm.
Marcus & Millichap closes $13.3M multifamily sale
Berea, Ohio—Marcus & Millichap has arranged the sale of Stone Ridge Apartments, a 144-unit asset located in Berea, a Cleveland suburb, for $13,292,500 million. The $92,309 per unit price marks the highest ever paid for a multifamily asset in the Cleveland metropolitan statistical area.
The Pennsylvania-based buyer, Stone Ridge Apartments LLC, was represented by Daniel Burkons and Michael Barron, both vice presidents in Marcus & Millichap’s Cleveland office, and Joshua Wintermute, an investment associate. Financing was arranged by David Davenport and Barbara Sullivan of Bellwether Real Estate Capital, who placed a new FHA mortgage on the property.
“The low interest rates available on permanent, nonrecourse debt helped us sell this property at a record breaking price,” says Burkons. “In fact, our team in Cleveland has closed more than $90 million in multifamily sales in the past 12 months, and several of those transactions were made possible by FHA and Freddie Mac financing.”
Stone Ride Apartments includes six three-story buildings constructed in 2007. There are 36 one-bedroom and 108-two bedroom units. Amenities include a clubhouse, 24-hour fitness center, coffee bar, an executive business center and a resort-style heated swimming pool.
“As one of the newest properties in the submarket with a full package of amenities, Stone Ridge is well positioned to achieve strong occupancy levels for years to come,” says Wintermute.