Northmarq arranges largest single property multifamily sale in Nebraska history

ST. LOUIS, MISSOURI (November 29, 2021) – Northmarq’s St. Louis investment sales team of Parker Stewart and Dominic Martinez collaborated to arrange the sale of Fairways at Lincoln. The 613-unit resort-style multifamily property, built in 2007, is located at 375 Fletcher Avenue in Lincoln, Nebraska. According to Real Capital Analytics (RCA), this transaction is the largest single property multifamily sale in Nebraska history.

Northmarq represented the seller in the transaction, Kansas City-based Cohen-Esrey and provided financing for the buyer, Connecticut-based Hamilton Point Investments.

“Fairways of Lincoln checked several boxes for hundreds of investors across the country. The size, vintage, proven upside on upgraded units, exceptional fundamentals of the Lincoln multifamily market, and overall uniqueness of the asset led to an extremely competitive process,” said Parker Stewart, managing director of Northmarq. “We were able to generate significant interest, with the majority of these groups bidding on a property in Nebraska for the first time. Ultimately, the profile of the deal fit perfectly for the buyer, providing solid in-place operations, and the ability to continue renovations.”

“We received 24 written LOIs from local, national and international investors across 15 states and two countries, demonstrating the extremely strong demand for well-positioned multifamily properties throughout the Midwest,” said Dominic Martinez, associate vice president for Northmarq. “The overall interest and final sale price is a testament to the long-term belief in multifamily investments across the secondary and tertiary markets.”

Fairways at Lincoln is situated on a 9-hole premier golf course, with residents benefitting from discounts on green fees, golf carts and driving range fees. Fairways at Lincoln is located between the University of Nebraska-Lincoln and the community of Arbor (North Lincoln). North 27th Street is nearby, offering residents access to numerous big-box retailers, restaurants, and entertainment options. Commuters have easy access to HWY 34, I-80 and I-180. Prior to the sale, 99 of the units were updated with modern kitchens and bathrooms.

John Reed, managing director of Northmarq’s Omaha debt/equity team secured acquisition financing for the property. The transaction was structured with a 5-year term with 1-year of interest only payments, followed by a 30-year amortization schedule. Northmarq arranged the permanent-fixed loan at 70 percent LTV with five years fixed at 2.75 percent for the borrower, Hamilton Point Investments LLC, through its Optigo status as a Freddie Mac lender.

“Northmarq’s Investment Sales team was able to maximize the value of Fairways at Lincoln through extensive relationships throughout the country. Our team in the Omaha division worked with the investment sales team and the borrower to craft a seamless debt execution that was structured and ready to rate lock upon executed PSA. Northmarq arranged an outstanding first mortgage through its close relationship with Freddie Mac,” said Reed.

Lincoln is a city of nearly 290,000 residents, making it the second-largest city in Nebraska, trailing only Omaha. The city is known for being the capitol city of Nebraska, as well as being home to the University of Nebraska. Lincoln also has a reputation as a vibrant and safe city with a tremendous amount of parkland spaces. The business community in Lincoln is thriving, adding more than 22,000 net new jobs since 2010. This healthy growth in employment drove the local unemployment rate below 2.5 percent, one of the lowest figures in the country.