Multifamily - Debt

NorthMarq’s Chicago office arranges $26,200,000 construction take-out for recently built multifamily in Brookfield, Wisconsin

CHICAGO, ILLINOIS (December 11, 2020) – Brett Hood, senior vice president of NorthMarq’s Chicago-based regional office, secured $26,200,000 in permanent agency debt recapitalizing Poplar Creek Club, a recently stabilized 138-unit Class A multifamily community located in Brookfield, Wisconsin. The Freddie Mac arranged loan represents 75 percent loan-to-value featuring a 10-year fixed rate term with 5-years interest only followed by a 30-year amortization cycle. Loan proceeds retired a $22,580,000 construction facility enabling the sponsor to recapture a portion of the equity required for asset development. 

“The collateral was delivered in two phases between April and December 2019 experiencing strong lease up velocity despite the ongoing COVID-19 pandemic,” said Hood. “The property’s lease up success is a testament to the strength in asset quality and location.” The City of Brookfield is considered an affluent second-ring Milwaukee suburb located 14 miles west of the CBD known for its quality residential housing, exceptional school system, and strong commercial base.

The property consists of a single four-story building encompassing 138 highly-amenitized units above a 143-space structured parking garage and a separate 4,544 sf single-tenant retail outlot building. The residential building consists of a north and south wing feeding into a central common area complete with leasing office, resident clubhouse, fitness center, yoga studio, and central outdoor pool and sundeck. Unit amenities include large floor plans, 9-foot ceiling, gourmet kitchen (complete with island, custom cabinets, granite countertops, and stainless-steel appliances), in-unit washer/dryer, keyless entry, patio/balcony, and gas fireplaces.  

“The nature of Freddie Mac’s program enabled an efficient closing process with certainty of execution in a volatile Covid-19 environment,” said Hood. “The property was nearing stabilization when the transaction was put under application. The flexibility of Freddie Mac’s program enabled the sponsor to index lock early in the process and ultimately upsize the loan amount based upon continued property collection improvement prior to loan closing.”

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.