CBRE Capital Markets’ Debt & Structured Finance division arranged $2.8 million in long-term acquisition financing for Yorkshire Apartments, a 28-unit multifamily complex located along Holmes Avenue in the popular Uptown neighborhood of Minneapolis.
Ben Bastian and Mark Roos of CBRE’s Minneapolis office represented the borrower, Kanata Properties Yorkshire LLC. The borrower is an affiliate with Kanata Properties LLP, a private real estate investment firm with a growing portfolio of apartment units in the Twin Cities Metro area. The financing process was fewer than 60 days from signed loan application to closing.
The financing was obtained through Freddie Mac’s Small Balance Loan Program and offers several attractive features: 10-year fixed interest rate below 3.65 percent, 70 percent loan-to-value, a 30-year amortization, non-recourse, low closing costs, and is fully assumable.
“This is a stabilized long-term hold for the borrower. Putting debt with an interest rate below 3.65 percent on the property through Freddie Mac’s SBL program was an ideal marriage of financing,” said Mr. Bastian, vice president.
Yorkshire is located in the heart of Uptown, only one and a half blocks from the intersection of Hennepin Avenue and Lake Street. The property benefits from the surrounding amenities in the Uptown area. With proximity to Lake Calhoun, abundant retail, the Midtown Greenway bike trail, high frequency public transit and nightlife, this is a top urban market.
The three-story apartment building was built in 1929 and offers a mix of studio and one-bedroom units. Project amenities include controlled access, storage lockers, central laundry, bike storage and proximity to public transportation. The property has historically operated at or near full occupancy, and was 100 percent occupied at the time of closing.