ST. LOUIS, MISSOURI (August 15, 2022) – David Garfinkel, senior vice president/managing director of Northmarq’s St. Louis-based regional office, negotiated a $23.5 million construction loan for the Terraces at Wildhorse Village, a 70-unit, Class A, luxury townhome development in Chesterfield, Missouri.
The project is part of Wildhorse Village, a $500 million, 80-acre mixed-use development.
Northmarq arranged the financing for the borrower/developer, St. Louis-based Pier Property Group (PPG), through its longstanding relationship with regional bank INB. This is the fourth construction loan that Northmarq has secured for PPG, a prolific multifamily developer in the St. Louis market, through multiple bank lenders. These loans have totaled more than $125 million.
“We were excited to work with Michael Hamburg, owner of PPG, on the construction financing of this high-quality asset in an incredible location in Chesterfield,” Garfinkel said. “Also, Mr. Hamburg sees the value of working with Northmarq on the construction lending side. We have helped in numerous ways to get him better deals in these transactions, whether it is lower interest rates or more interest only or more loan proceeds.
“Additionally, INB is a great lender with an easy process,” Garfinkel continued. “We were able to lock rates for PPG before the Treasuries jumped, and INB held the rate through commitment. We were able to obtain a very attractive, five-year fixed-rate loan. Mr. Hamburg likes to fix his rate, if possible, to take the risk out of the deal. This is an outstanding repeat lender/borrower relationship.”
“It was a pleasure working with Northmarq and David Garfinkel again on the Terraces at Wildhorse Village transaction,” Hamburg said. Hamburg launched PPG in 2016 and has just over 1,000 multifamily units under construction, or recently completed, as well as approximately 100,000 square feet of retail space.
“This transaction comes down to Northmarq’s expertise in the industry, especially in our market, and the knowledge base and track record of executing with regional and larger banks,” Hamburg continued. “The relationships they bring have just been invaluable.”
Hamburg also appreciates the approach that Northmarq and Garfinkel take. “We just have a very trusting relationship with an open dialogue, and that transparency has been key in our relationship,” Hamburg added.
The Terraces at Wildhorse Village will be 70 units of connected, rental brownstone townhomes with two-car tucked-under garages. The project is the “build-to-rent” prototype and will feature three-bedroom, three-and-a-half bath units that are all a spacious 2,250 square feet.
Build-to-rent is a unique product for St. Louis.
“There are not a lot of comparables of that scale in this market,” noted Hamburg. “That was definitely a unique challenge, and Northmarq was able to excel and tell that story the right way to the capital markets. They were able to gain interest, even though it might be a little bit of an unfamiliar product.”
The townhomes will feature quartz countertops, stainless steel appliances, glass shower doors, and custom flooring. The development is scheduled to break ground later this summer and be completed in approximately 12 months.
The Terraces at Wildhorse Village will be located immediately adjacent to the Flats at Wildhorse Village, PPG’s four-story, 266-unit, luxury apartment development that is under construction and slated for completion in fall 2023.
Community amenities for these multifamily developments will include an interior courtyard, resort-style pool, deck with grilling stations, firepits, fitness center, dog park, dog spa, business center, resident lounges, bike storage, and a 400-space parking structure.
The Wildhorse Village property is conveniently located in the thriving suburb of Chesterfield and offers easy access to Interstate 64. Chesterfield is located 25 minutes west of downtown St. Louis.
“Chesterfield boasts very high-end demographics including a strong employment base, high incomes, a lot of rooftops, and many shopping and dining destinations,” Garfinkel noted. “Wildhorse Village is being developed in a tremendous location in St. Louis. I believe the new units at Terraces at Wildhorse Village and the Flats at Wildhorse Village are going to lease exceptionally well due to the robust demand.”