Chicago & Midwest + Midwest + Finance | December 4, 2020

NorthMarq Lines Up $89M Recap of KC and Quad Cities Apartments

SVP Brett Hood of NorthMarq’s Chicago office, secured $89,080,900 in combined FHA debt recapitalizing five multifamily properties in Davenport, IA and Kansas City, MO. All five were encumbered with existing FHA debt and eligible for HUD’s 223a7 refinance program.

The refinance allowed the sponsor to capitalize on lower interest rates, extend amortization, and improve property cash flow with the reduced cost of debt service. Loan amounts ranged from $8,818,800 to $21,724,200.

“The nature of the a7 program enabled a streamline refinance with certainty of execution in a volatile COVID-19 environment,” said Hood. “The sponsor is an experienced HUD borrower and recognized the current interest rate environment as an opportunity for a rate-reset and cash flow savings.”

Two of the properties, Bennington Ridge Apartments and Bennington Park Townhomes, are located in Kansas City. The three remaining properties—Jersey Meadows, Ashford, and Alexis at Perry Point–are located in Davenport.

Pictured: Alexis at Perry Point.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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