Adrian Hartman of the Colliers Mortgage St. Louis office recently closed an $11.054 million Fannie Mae loan for the refinancing of Hummingbird Heights in Union, Missouri, for borrower Hummingbird Heights LLC.
The 108-unit market rate multifamily property spans 21 garden-style apartment buildings managed by ELS Properties, LLC.
The refinance enabled ownership to recoup a portion of equity deployed during development, reposition conventional debt to non-recourse freeing up future development borrowing capabilities, and boost cash flow due to the longer amortization and interest only period.
This developer/owner has used Agency previously as part of its strategy to develop conventionally with non-recourse debt planned for the hold period to enhance cash flow and manage risk. Currently, bank terms are unable to match proceed levels of the secondary market due to DCR constraints. The longer amortization and lower rate available through Agency will consistently yield higher loan proceeds.
