ST. LOUIS, MISSOURI (September 12, 2022) – Managing Director Parker Stewart, Senior Associate Alex Malzone, and Associate Vice President Dominic Martinez of Northmarq’s Chicago and St. Louis investment sales team completed the $45,000,000 disposition of Prairie Vista Apartments.
“Prairie Vista garnered national interest due to its size, vintage, and phenomenal location within the Dunlap School District in Peoria, Illinois,” said Malzone. “The California-based 1031 exchange buyer will benefit from the strong organic growth in the North Peoria region and execute on a modest value-add program throughout the private-entry interior units.”
Northmarq’s St. Louis office secured $27,000,000 in acquisition financing for the 304-unit Prairie Vista Apartments, located at 2401 West Alta Road in Peoria, Illinois. Northmarq secured the permanent-fixed loan for the borrower, Bay Area, California-based investor Prairie Vista SPE Owner LLC, through its Optigo status as a Freddie Mac lender. The loan was arranged through Freddie Mac on a 10-year fixed rate structure with five years of interest only followed by a 30-year amortization schedule.
“Since Prairie Vista Apartments has a high component of ‘mission-qualifying’ rents, Freddie Mac was very aggressive on both pricing and structure and provided strong options for long-term debt.This is a high-quality transaction and a high-performing asset in terms of both occupancy and overall cash flows.”
The Northmarq team also noted that they were able to secure financing for the property from Freddie Mac due to proceeds, which were driven by their ability to go to a 1.20 debt service coverage ratio (DSCR).
“The big driver for our client to select this lender was the ability to stretch loan proceeds and lock in the interest rate.”
This is the third acquisition financing loan that Northmarq arranged for the borrower through Freddie Mac, as they have established a longstanding relationship.
“We have been very excited to work with this client on these acquisitions, which will be excellent additions to their strong Midwest multifamily portfolio.”
“NorthMarq and the team were great to work with. They made sure to look out for me throughout the process, ensuring that everything was handled properly on my end,” the borrower said.
Prairie Vista Apartments is a large asset encompassing 43 buildings, including 38 rental buildings, a clubhouse, a pool house, and garages. The Class B+ multifamily, market-rate property was built in 2006. The units are essentially 100 percent occupied.
Prairie Vista Apartments has one-, two-, and two-bedroom with loft floor plans. The units offer private entrances, free high-speed internet, in-unit washer/dryer, and onsite property management and maintenance. Community amenities include a clubhouse, fitness center, heated swimming pool, bike storage, and a pond.
The property is located near Peoria Lake and provides commuters easy access to Interstates 474 and 74. Three institutions of higher learning are located within 10.8 miles of the complex and three shopping centers are within 2.5 miles. Residents also benefit from opportunities to access natural and recreational resources, including five parks located within 14.2 miles.