NorthMarq Capital arranges cash out refinancing of $38,617,000 through Freddie’s Green Advantage Program for multifamily properties in Wisconsin

Brett Hood, senior vice president of NorthMarq Capital’s Chicago regional office, arranged $38,617,000 in permanent financing to recapitalize Rivershire and Riverwood Apartments. The two properties reside across the street from one another in southwest suburban Milwaukee within one of the metro’s top performing multifamily submarkets. The collateral encompasses 54 garden-style buildings totaling 432 units. The loan represents a 78 percent LTV on a 10-year fixed-rate term. The loan was structured with the first four years interest only followed by a 30-year amortization cycle. NorthMarq arranged financing for the borrower through Freddie Mac’s Green Advantage Program. “The transaction represented a significant cash out for the sponsor, whom originally developed the collateral between 1989 and 1999,” said Hood. “NorthMarq and Freddie Mac collectively got comfortable with the large equity recapture given the asset’s steady historical performance coupled with the sponsor’s continued investment through property renovations.” Approximately $2.7 million was spent on capital improvement projects over the past five years including a new clubhouse featuring an upgraded fitness center, expanded community room, and renovated leasing office. “Freddie Mac’s Green Advantage execution, whereby the sponsor agrees to undertake certain energy savings projects post-closing, enabled the sponsor to maximize loan proceeds while offering a substantially reduced coupon rate. Furthermore, the borrower elected to eliminate interest rate risk early in the process through Freddie Mac’s Index Lock feature.”