Northmarq completes $12,187,000 construction takeout financing of build-to-rent community in Oak Creek, Wisconsin

The BTR community is part of Northmarq’s continuing expansion into a national leader for this product type, including 25+ communities sold and financed at $1.5+ billion

CHICAGO, ILLINOIS (October 28, 2021) – Brett Hood, managing director of Northmarq’s Chicago-based regional office, secured $12,187,000 in construction takeout financing for the recently completed first phase of Residences at Oak View located at 10730 South Howell Avenue in Oak Creek, Wisconsin. The community features 42 modern rental homes with open floors plans, designer finishes, smart technology systems, and attached garages all nestled in a single community with common access to a state-of-the-art clubhouse complete with a fitness center, game room, community room, and outdoor pool. The transaction was structured with a 10-year term with 5-years of interest only followed by a 30-year amortization schedule. Northmarq arranged financing for the borrower, ModHomes, through its Optigo status as a Freddie Mac lender. 

“The project is the first build-to-rent development in southeastern Wisconsin and I expect much more to come based upon national trends,” said Hood. “The property’s tremendous lease up velocity points to the insatiable demand for this market-differentiated product type.” The property was 100 percent pre-leased within two months of the first home delivery and achieved occupancy stabilization within five months. Construction on the 41-home second phase is currently underway with an anticipated summer 2022 delivery. Construction financing for both phases was facilitated through Northmarq as well.

“The subject transaction was an ideal fit for the Freddie Mac program given their understanding and experience for this product type,” added Hood. “The execution enabled the borrower to index lock early in the process eliminating interest rate risk, recapture a significant portion of equity, pay reduced interest only debt service for half the loan term, all at a very attractive coupon rate.”  

NorthMarq has completed more than $1.5 billion in single-family home rental transactions in the U.S. and has over 15 active listings and assignments. The rising wave of developers, investors, renters and lenders interested in single-family build-to-rent has made it one of the hottest sectors in the multifamily market, according to Northmarq’s recently released Single-Family Build-to-Rent Properties Special Report.