CBRE Capital Markets’ Debt & Structured Finance team has arranged new permanent financing for the recapitalization of the 26-unit LaSalle Apartments in downtown Minneapolis.
The firm’s Capital Markets team successfully secured a mortgage of 73 percent loan to value for the refinancing through its Freddie Mac Seller/Servicer program.
The financing was obtained through Freddie Mac’s Small Loan Balance loan program and offers several attractive features: a low 10-year fixed interest rate of 4.15%, 30-year amortization after 36 months interest only, 1.20x debt service coverage ratio, non-recourse, low closing costs, and is fully assumable.
The 26-unit building is located at 1524 LaSalle Avenue South in downtown Minneapolis in the Loring Park neighborhood. The three-story building was built in 1919, fully renovated in 2015 and is 96.2 percent occupied. The property has historically recorded high occupancy.
The borrower, 219 1524 LaSalle, LLC, is owned by Maven Real Estate Partners, who has active projects in Minneapolis and Chicago.
Maven Real Estate Partners purchased the property in July 2014 for $2.0 million and have since completed major in-unit upgrades, which include completely new kitchens, including cabinets, counter tops and appliances; renovated bathrooms and fixtures; refinished floors and walls; and new lighting.
Joel Torborg and Ben Bastian of CBRE’s Minneapolis office represented the borrower.