Northmarq completes contribution and financing of Orchard Park and Orchard Park South in Springfield, IL

CHICAGO, ILLINOIS (December 21, 2022) – Northmarq’s Chicago/St. Louis Investment Sales team of Alex Malzone, associate vice president, Parker Stewart, managing director, and Dominic Martinez, vice president, arranged the $27 million contribution of Orchard Park & Orchard Park South in Springfield, Illinois. Brett Hood, managing director of Northmarq’s Chicago Debt + Equity team, secured a permanent fixed-rate Freddie Mac loan for the borrower. The properties contain a total of 404 units and are in one of the premier areas of Springfield. The owner, a local investor, contributed the properties to an affiliate of MLG Legacy Fund and its real estate investment manager, MLG Capital, based in Brookfield, Wisconsin.

“This was another seamless transaction working with MLG on its quickly growing Legacy Fund. The structure has given our team the ability to offer a proven solution to various long-term owners interested in contributing an asset at market price but who are hesitant to take on the capital gain liability,” said Stewart. 

“Our team is excited for another closing with MLG Capital within their Legacy Fund. This tax-deferred execution allows owners to contribute their equity interest to the fund to achieve diversification by property type and geography, and not face the challenges of a standard 1031 exchange due to time constraints,” said Malzone.

- Orchard Park: The 284-unit property is located at 1516 Seven Pines Road on the southwest side of Springfield and was built in phases between 1986-1995. 

- Orchard Park South: Located at 2725-2765 South 4th Street, the 120-unit property was built in phases between 1986-1995.