Multifamily - Debt

NorthMarq’s Minneapolis office completes $12.75 million refinance of affordable housing portfolio in St. Paul, Minnesota

MINNEAPOLIS, MINNESOTA (September 11, 2019) – NorthMarq Minneapolis’ Michael Padilla arranged the $12.75 million refinance of St. Paul Preservation Portfolio. The portfolio contains a combined 172-unts.

Financing Details:
– 16-year term (with 2-years interest only)
– 35-year amortization schedule
– NorthMarq and Freddie Mac, funded the loan under the Immediate 9% loan program secured by a first lien on the portfolio. 
– Preservation Project One, LLC represented the borrower. 

Producer Quote:
“The borrower has been awarded a nine percent tax credit allocation in association with this project. The $1,900,000 rehab is anticipated to take 12 months.  The rehab will be occuring with tenants in place.”

– Michael Padilla

Property Details:
– All units at the properties will be restricted to 60% AMI levels per the LIHTC LURA. 
– The portfolio contains five properties
– The property will operate under Minnesota’s LIRC 4d tax program.
– The LIRC program provides a class rate reduction down to 0.75% from 1.25%, in property taxes for qualifying low-income units. The LIRC requires the LURA to be in place in order to receive the 4d tax benefits. A new LIHTC LURA is being drafted and will be recorded by the end of 2019 so that the application for 4d tax benefits can be completed by the March 31, 2020 deadline.  

This transaction was featured in REJournals

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 $14 billion, loan servicing portfolio of more than $61 billion and the multi-year tenure of our nearly 600 people.