November 8, 2019
Brett Hood of NorthMarq’s Chicago office secured a $15,645,000 loan to recapitalize a recently renovated, 91-unit Art Deco multifamily building in Lincoln Park. NorthMarq arranged the seven-year, fixed-rate loan structured with two years’ interest-only through its relationship with Freddie Mac.
Within walking distance to both CTA train stations and Lake Michigan, the property at 550 W. Arlington Pl. had recently stabilized after witnessing a complete gut renovation totaling approximately $40,000 per unit. The loan arranged by Hood represented the sponsor’s first agency execution.
The loan was signed up just prior to agency spread increases tied with volume caps in early fall. “The nature of Freddie Mac’s execution allowed the spread to be held throughout the underwriting process, and ultimately enabled the borrower to benefit from the dropping seven-year U.S. Treasury yield index upon final rate lock,” said Hood.
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