Brett Hood, managing director of NorthMarq’s Chicago-based regional office, secured $13.5 million in Freddie Mac debt to recapitalize Parkside Apartments, a 120-unit apartment community in Hales Corners, Wisconsin.
Loan proceeds retired $6.015 million in existing agency debt and return equity to the borrower.
The property was developed in three distinct phases between 1969 and 2005. The sponsor acquired the original phase in 1999, developed 32 additional units in 2005 and acquired an adjacent 32-unit complex in 2008.
Operated as a single community, Parkside offers residents expansive floorplans at an affordable price point for the area. The property includes garage parking, in-unit laundry, and lofted and townhome style floorplans. Hales Corner is a popular Milwaukee suburb known for its quality residential base and strong public-school system.
Freddie Mac, the existing lender, provided superior loan terms on the cash-out refinance. The loan was structured with a 10-year term featuring five years of interest-only payments. With strong performance metrics and spring leasing momentum, final loan proceeds were ultimately increased by more than $640,000 at the time of closing.
The borrower also utilized Freddie’s index-lock feature early in the process, securing an attractive index and final note rate. Freddie Mac sought to keep the loan in their portfolio and was comfortable with the transaction given the experienced sponsor, conservative loan metrics, and “mission driven” component.