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NorthMarq Secures Acquisition Debt for Sioux Falls Portfolio
NorthMarq’s Brett Hood recently secured $35,384,000 in combined agency debt facilitating the acquisition of seven independent multifamily properties in Sioux Falls, SD. The Freddie Mac-provided financing allowed for seven separate loans ranging from $1,935,000 to $9,300,000, representing approximately 77% of the sponsor’s aggregate capital stack.
The 15-year loan terms were structured with an impressive seven-years interest only, followed by 30 years of amortization. The borrower utilized Freddie Mac’s index lock feature, eliminating interest rate risk early in the due diligence process.
“The opportunity for the sponsor was to acquire a well-maintained, institutionally-operated, historically well-occupied, diversified portfolio with cash flow stability and positive underlying revenue trends,” said Hood. “The nature of Freddie Mac’s execution allowed for an effective and timely closing process.”
Several of the properties are close to Citibank’s newly relocated $72-million corporate campus and Avera’s massive $172-million specialty campus that just delivered its first building.
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- ◦Financing
- ◦Sale/Acquisition
