CHICAGO (October 3, 2018) – Brett Hood and Jeff Frankel, both senior vice presidents of NorthMarq Capital’s Chicago regional office, arranged acquisition financing of $23.5 million for The Celebration at Sandy Springs, a 250-unit multifamily property located at 7000 Roswell Road in Sandy Springs (Atlanta), Georgia. The permanent floating rate loan was structured with a 10-year term featuring 5-years of interest-only payments followed by a 30-year amortization schedule. The financing was executed through Freddie Mac’s ARM (Green Advantage) program.
The property was acquired by a Chicago-based multifamily operator active in eleven states across the country. The subject represents the group’s sixth investment in the Atlanta MSA over the past three years and is strategically positioned between two dynamic economic hubs, namely North Fulton and Perimeter Center in north suburban Atlanta.
“The sponsor’s business plan is to invest an additional $7,000/unit post-closing for interior unit and common area upgrades. The nature of Freddie Mac’s ARM program allowed the sponsor to maximize loan proceeds, pay a lower initial coupon (based over LIBOR), reduce interest rate exposure through a third-party cap, all while offering prepayment flexibility after achieving the anticipated value-add proposition,” said Hood. “The Green execution allowed the sponsor to qualify for a substantial pricing discount while making long-term beneficial utility savings improvements to the property.”