SIOUX FALLS, S.D. — Tzadik Management has received $80 million for the refinancing of two multifamily portfolios totaling roughly 1,100 units across 22 communities in Sioux Falls. Tzadik acquired the first portfolio in October 2018 and completed $5 million in capital improvements. Another $4 million in improvements is set to be completed within the next year. Tzadik purchased the second portfolio in March 2019. Miami-based Tzadik says it is exiting primary markets and positioning itself in the upper Midwest region. The lender was undisclosed.
AURORA AND KANKAKEE, ILL. AND NOVI, MICH. — Walker & Dunlop Inc. has provided $37 million in financing for two senior living facilities in Illinois and one in Michigan. Walker & Dunlop provided $14.9 million for The Grove Fox Valley, a 156-bed skilled nursing facility in Aurora, Ill.; $14.9 million for WellBridge of Novi, a 100-bed skilled nursing facility in Novi, Mich.; and $7.4 million for Asbury of Kankakee, a 98-bed supportive living facility in Kankakee, Ill. Joshua Rosen of Walker & Dunlop led the origination team, which utilized HUD’s Lean 232/223(f) refinance program. The permanent financing for The Grove Fox Valley will replace existing debt previously provided by Walker & Dunlop’s bridge lending program. The permanent financing for WellBridge of Novi and Asbury of Kankakee enabled each of the property owners to refinance both their current bank and partnership debt.
James Flynn, CEO of Hunt Real Estate Capital and ORIX Real Estate Capital, spoke with Randy Shearin of France Media in a brief interview to give insight on what lenders think about debt and equity during the COVID-19 pandemic, industry flexibility and pivoting operations with an eye towards what assets are most likely to recover quickly after the crisis. Flynn talks not only about how the pandemic has changed business as usual for lenders, but also Orix’s acquisition of Hunt Real Estate and the need to transition as a business in the midst of global change. Listen to this interview here. Topics discussed by James Flynn and Randy Shearin include: Mergers and uniting platforms/organizations in a time when tech is paramount Deal closing/lending: before, during and after COVID-19 Sectors/asset classes of interest to lenders Hear how lenders are approaching the coronavirus pandemic crisis and what’s ahead for the lending industry. Q&A sponsor: Hunt Real Estate Capital, a division of ORIX Real Estate Capital, is a leader in financing commercial real estate throughout the U.S. The company finances all types of commercial real estate: multifamily properties (including small balance), affordable housing, office, retail, manufactured housing, healthcare/senior living, industrial and self-storage facilities. …
ATLANTA — Berkadia has provided a $16.2 million Freddie Mac refinancing loan for The Residences at City Center, a 182-unit affordable housing community in Atlanta’s Vine City neighborhood. The 10-year loan features a floating interest rate and five years of interest-only payments, followed by a 30-year amortization schedule. The property offers one-, two- and three-bedroom units that were recently renovated to include granite countertops, walk-in closets, stainless steel appliances and bay windows. Communal amenities include a pool, fitness center, laundry facilities, outdoor area with grilling stations and a dog park. The Residences is located at 55 Maple St. NW, adjacent to Mercedes-Benz Stadium. Andy Hill and Tyler Nowlin of Berkadia originated the loan on behalf of the borrower, Texas-based Domain Communities.
CHELSEA, MASS. — Arbor Realty Trust has provided a $59 million Fannie Mae loan for the refinancing of One North of Boston II, a 222-unit multifamily property located in the northern Boston suburb of Chelsea. Arbor provided the 10-year, fixed-rate loan to a joint venture between locally based firms Redgate Capital Partners LLC and TransDel Corp. Located at 150 Heard St., the six-story property totals 182,581 net rentable square feet and features two studio apartments, 161 one-bedroom, 44 two-bedroom and 15 three-bedroom units. The property, which is Phase II of the One North Boston project, was constructed in 2016. Jeff Black, Kevin Phelan, Sean Burke and Bryan Koop of Colliers International originated the loan.
BOSTON — EagleBridge Capital has arranged a $9 million loan for the refinancing of a 40,500-square-foot office building in Boston. A regional financial institution provided the 10-year, nonrecourse loan to the undisclosed borrower at a fixed interest rate of 3 percent. Located at 33 Broad St., the 11-story building is 100 percent leased to tenants in the legal, accounting, consulting, finance and real estate sectors. State Street Eye Health and Expresso Love lease the ground-floor retail space. Ted Sidel of EagleBridge arranged the loan.
HOUSTON — New York-based Arbor Realty Trust Inc. has provided a $28 million Fannie Mae loan for the refinancing of Casa Verde, a 384-unit apartment community in Houston. Built in 1973 and renovated in 2010, the property features one-, two-, three- and four-bedroom floor plans. Amenities include a pool, clubhouse and onsite laundry facilities. Brian Scharf of Arbor originated the loan on behalf of the undisclosed borrower.
ST. LOUIS PARK, MINN. — Dougherty Mortgage LLC has provided a $20.7 million HUD 221(d)(4) loan for the refinancing and rehabilitation of Oak Park Village, a 100-unit affordable housing property in St. Louis Park, just west of Minneapolis. All 100 units will be covered by a project-based Section 8 HAP contract. The property will undergo $4.7 million in renovations, including replacement of certain mechanical, plumbing and electrical systems and upgraded lighting. In addition to the HUD-insured first mortgage, the project utilized low-income housing tax credits and tax-exempt bonds. Dougherty & Co. LLC, an affiliate of Dougherty Mortgage, underwrote the bonds. The 40-year loan is fully amortized. Oak Park Village Partners LP was the borrower.
By Chad Thomas Hagwood, Hunt Real Estate Capital Thanks to the Federal Housing Finance Agency (FHFA), forbearance is now one of the biggest buzzwords in multifamily finance. When the FHFA announced at the end of March that Fannie Mae and Freddie Mac would offer mortgage forbearance to multifamily properties facing hardship as a result of COVID-19, many multifamily owners adopted a wait-and-see attitude. That was the right decision. As April went on, the NMHC Rent Payment Tracker steadily trended higher. By May 13, full or partial rent for the month of May was 87.7 percent collected. But with unemployment spiking to record levels, rent collections through the spring and into the summer will most certainly decline at many properties, causing owners to give those forbearance offers a second look. My advice: if there is anything owners can do to avoid forbearance, they should. While tempting, mortgage forbearance should be considered a last resort. Forbearance could take a reputational toll It’s generally implied that entering into a forbearance agreement will not impact a borrower’s ability to secure financing in the future. In an age that obsessively collects and retrieves data of all sorts, experience — and common sense — suggests that …
AMBLER, PA. — Greystone has provided a $45.8 million Fannie Mae loan for the acquisition of The Woods Apartments, a 321-unit multifamily property in the northern Philadelphia suburb of Ambler.The borrower was Woods Realty Associates. Located at 1410 E. Butler Pike, the garden-style property was originally constructed in 1974 and features one-, two- and four-bedroom floor plans. Dan Sacks of Greystone arranged the loan, which carries a 12-year term with a 30-year amortization schedule.