St. Paul, Minn.-based Oak Grove Capital recently originated a $25 million Freddie Mac CME loan for the refinance of the Durham Apartments, a 264-unit market-rate housing complex located in Edina, Minn.
The seven-year fixed-rate loan, which includes a 30-year amortization period after two years of interest-only, was provided to the borrower. The conventional cash-out refinance was secured with a 75 percent LTV ratio, which freed up $5 million for the renovation of existing units. All together, the facility includes about 281,000 square feet of rentable space.
“Not only did we provide our borrower with an extremely low interest rate, but also gave them the ability to pull cash out for renovations and a return of capital to the investors,” said Tim Leonhard, managing director at Oak Grove Capital. “This refinance is the fifth financing we’ve done with this borrower in less than two years, providing yet another good example of borrowers coming back to Oak Grove time and time again.”