CHICAGO, ILLINOIS (November 30, 2020) – Brett Hood, senior vice president of NorthMarq’s Chicago-based regional office, secured $89,080,900 in combined FHA debt recapitalizing five multifamily properties located in the Davenport, Iowa and Kansas City, Missouri.
All five properties were encumbered with existing FHA debt and eligible for HUD’s 223a7 refinance program. The refinance allowed the sponsor to capitalize on lower interest rates, extend amortization, and improve property cash flow with the reduced cost of debt service. Loan amounts ranged from $8,818,800 to $21,724,200.
“The nature of a7 program enabled a streamline refinance with certainty of execution in a volatile Covid-19 environment,” said Hood. “The sponsor is an experienced HUD borrower and recognized the current interest rate environment as an opportunity for a rate-reset and cash flow savings.”
Two of the properties, Bennington Ridge Apartments and Bennington Park Townhomes are located in Kansas City, Missouri. Bennington Ridge was constructed in 2000 and features 288 one and two bedroom units; Bennington Park was constructed in 1988 and includes 164 two and three bedroom townhome units.
The three remaining properties Jersey Meadows, Ashford, and Alexis at Perry Pointe are located in Davenport, Iowa and part of the Quad-Cities region. Jersey Meadows was constructed in 1985 and features 288 one and two bedroom units. Ashford was constructed in 2004 and includes 140 studio and one bedroom units. Alexis at Perry Pointe was built in 2004 and features 192 one-, two-, and three-bedroom units.