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Refi to Cover Cap Expenditures for Portfolio Renovation
A cash-out refi of $35.4 million was recently secured for a six-property 209-unit multifamily portfolio built between 1967 to 1968 and dispersed throughout central Denver. JLL worked on behalf of the borrower RedPeak Properties LLC to originate the 10-year fixed-rate full-term interest-only Fannie Mae loan.
The all-in-rate of the 65 percent loan-to-value loan was sub-3 percent. JLL structured a blanket mortgage on the scatter site portfolio in order to improve pricing and terms for RedPeak. The loan will be serviced by JLL Real Estate Capital LLC, a Fannie Mae DUS lender, and proceeds will be used to refinance the existing loan and for the capital expenditures toward the renovation of all units.
Acquired by RedPeak in February 2019, the portfolio properties are located at 1280 Lafayette St., 10 South Pennsylvania St., 899 Washington St., 960 South Logan St., 1360 Williams St. and 1402 Race St. The properties contain a mix of studio, one- and two-bedroom units.
The JLL capital markets debt team that represented the borrower was led by Eric Tupler and Tony Nargi.
“RedPeak did an absolutely tremendous job in fully renovating these 1960s vintage assets and preserving very well-located market-rate affordable housing in central Denver,” said Nargi.
- ◦Financing
