Multifamily - Debt

NorthMarq’s Chicago office arranges $13,500,000 in permanent financing for Parkside Apartments in Hales Corners, Wisconsin

CHICAGO, ILLINOIS (July 16, 2021) – Brett Hood, managing director of NorthMarq’s Chicago-based regional office, secured $13,500,000 in Freddie Mac debt to recapitalize Parkside Apartments a 120-unit apartment community in Hales Corners, Wisconsin. Loan proceeds retired $6,015,000 in existing agency debt and return equity to the borrower. 

The property was developed in three distinct phases between 1969 and 2005. The sponsor acquired the original phase in 1999, developed 32 additional units in 2005, and acquired an adjacent 32-unit complex in 2008. Operated as a single community, Parkside offers residents expansive floorplans at an affordable price point for the area. The property includes garage parking, in-unit laundry, and lofted and townhome style floorplans. Hales Corner is a popular Milwaukee suburb known for its quality residential base and strong public-school system.  

Freddie Mac, the existing lender, provided superior loan terms on the cash-out refinance. The loan was structured with a ten-year term featuring five years of interest only payments. With strong performance metrics and spring leasing momentum, final loan proceeds were ultimately increased by over $640,000 at the time of closing. The borrower also utilized Freddie’s index-lock feature early in the process, securing an attractive index and final note rate. Freddie Mac sought to keep the loan in their portfolio and was comfortable with the transaction given the experienced sponsor, conservative loan metrics, and “mission driven” component.   

“The Milwaukee-based sponsor is a repeat Agency borrower. The ability to index-lock early in the process and increase loan proceeds makes the Freddie program a great fit,” said Hood.

As a capital markets leader, NorthMarq offers commercial real estate investors access to experts in debt, equity, investment sales, and loan servicing to protect and add value to their assets. For capital sources, we offer partnership and financial acumen that support long- and short-term investment goals. Our culture of integrity and innovation is evident in our 60-year history, annual transaction volume of more than $16 billion, loan servicing portfolio of more than $65 billion and the multi-year tenure of our nearly 600 people.