Berkadia recently arranged an $11 million loan for Fairway Apartments, a multifamily housing community located in West Lafayette, Indiana.
Managing Directors Louis Weisman and Aaron Cardwell of the Seattle and Chicago offices, respectively, secured the 10-year, fixed-rate financing through Freddie Mac‘s Index Lock program.
The program allows borrowers to remove interest rate risk over the forward rate lock period of the loan and is unique to Freddie Mac’s fixed rate CME program. Through the program, borrower Redwood-Kairos Real Estate Partners, was able to take advantage of low treasuries available earlier in 2015.
The loan will be used to refinance existing debt on the community, which is located at 1304 Palmer Drive in West Lafayette, Indiana. Loan terms include a 3.98 percent interest rate, 30-year amortization schedule and six month forward at nominal additional cost.
Fairway Apartments is located fewer than two miles north of Purdue University. Consequently, students account for a large portion of the community’s current 99 percent occupancy. The community consists of 167 units across 12 three-story buildings. Floor plan options include one-, two- and three-bedroom layouts. Originally built in the 1960s, the community was renovated in 2007. The remodeling included the addition of a new clubhouse, which offers residents a fitness center, tanning bed, poker tables, computers, couches, and a kitchen area.
“Our offices worked together to leverage our long-standing relationship with Freddie Mac and its extensive experience with the Midwest markets to secure competitive loan terms,” Weisman said.
“High demand from the students, faculty and administration of Purdue University make this an extremely appealing community for the borrower,” Cardwell added.
