Multifamily - Debt

NorthMarq finalizes $10,771,200 refinance via FHA/HUD of Hurstbourne Heights Apartments in Louisville, Kentucky

LOUISVILLE, KENTUCKY (May 27, 2021) – Randall Waddell, senior vice president of NorthMarq’s Louisville office arranged the $10,771,200 refinance of Hurstbourne Heights Apartments. The 84-unit multifamily property is located at 7603 Downs Farm Place in Louisville, Kentucky. The transaction was structured with a fully-amortizing 35-year term. NorthMarq arranged the permanent, non-recourse fixed- rate loan for the borrower through its in-house FHA/HUD team.

The development is located in the Highview area of Jefferson County with excellent proximity to major employers including GE’s Appliance Park, Ford’s SUV assembly plant, and the Louisville International Airport, home to the Global UPS AirHub. This sub-market enjoys a low vacancy rate and Hurstbourne Heights further benefits from an aging apartment inventory. Constructed in 2019, it is professionally managed by PMR Companies.

The loan was funded by NorthMarq Finance, LLC, a fully licensed FHA lender and approved GNMA seller/servicer through HUD’s  223(f) program. Borrower benefits from the program included: the highest LTV available in the market, low fixed interest rates based on GNMA securities, greater cash flow due to the 35-year amortization schedule, a borrower-friendly prepayment provision and assumability at very low cost.  Further, unlike most permanent lending programs, there are no market size or geographic restrictions.

“Since HUD eliminated the requirement that properties have at least three years of stabilized experience in the spring of 2020, the 223(f) program has been an extremely attractive option for recently completed apartment developments, permitting maximum proceeds on cash outs with no limitation based on original costs,” said Waddell. “In the case of Hurstbourne Heights, the HUD refinance permitted the take-out of construction financing with a long-term, very attractively priced loan that has the added benefit of being prepayable without penalty following the tenth loan year.”


Northmarq is a full-service capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales and loan servicing. We combine industry-leading capabilities with a flexible structure, enabling our national team of experienced professionals to create innovative solutions for clients. Our solid foundation and entrepreneurial approach have built an annual transaction volume of more than $37 billion and a loan servicing portfolio of nearly $76 billion. Through the 2022 acquisition of Stan Johnson Company and Four Pillars Capital Markets, Northmarq introduces clients to expanded opportunities across all major asset classes.