Oak Grove Capital, a provider of multifamily housing real estate financial services, has announced the origination of a $33 million Fannie Mae structured ARM loan for the refinancing of Fox Valley Villages, a 420-unit market-rate housing community within the Chicago MSA.
The adjustable rate loan provides the borrower 75 percent leverage with one year of interest-only, and carries an interest rate that floats at a spread of 2.36 percent over LIBOR. The loan has a one-year lockout, and can either be prepaid at a 1 percent penalty or converted to longer-term fixed-rate financing.
“This transaction embodied the best possible combination of leverage, pre-payment flexibility, and a very low pay rate,” said Tim Leonhard, managing director at Oak Grove Capital. “The structured ARM product provided our customer with a full leverage, non-recourse bridge-type financing that is not available anywhere else in the marketplace.”