Dealmaker: Pillar Originates $18M in Multifamily Refis
Pillar Finance, New York, originated $18.1 million to refinance multifamily assets in Ohio, Indiana and Maryland.
Pillar Managing Director Joe Markech originated an $11.3 million Fannie Mae the 10-year loan to refinance The Gramercy on Garfield in downtown Cincinnati, Ohio. Built in 1992, the Class A property includes 148 studio, one- and two-bedroom units and 16,000 square feet of street-level retail space.
Chip Kupferberg, Principal with BlueMark Capital, Cincinnati, brokered the deal.
Markech said the transactiom posed some challenges. “It required an extension of a ground lease and the property was in the middle of a renovation that posed issues in terms of maintaining full occupancy during the due-diligence phase.”
In Indianapolis, Ind., Markech originated $4.52 million to refinance 9000 Westfield Apartments. Built in 1972, the property consists of 98 garden-style units 95 percent occupied at closing.
The 10-year fixed-rate Freddie Mac loan included a 30-year amortization schedule.
PR Mortgage COO Mike Dury brokered the deal.
Markech said Pillar refinanced the existing Freddie Mac loan at a 75 percent loan-to-value ratio with a competitive interest rate and provided loan dollars to allow the sponsor to renovation the asset.
In Kensington, Md., Pillar Vice President Cullen O’Grady secured $2.39 million to refinance the existing loan for Plyers Apartments, a 24-unit workforce housing community built in 1964.
O’Grady secured a 10-year Freddie Mac Small Balance fixed-rate loan with a 30-year amortization schedule. The transaction closed on Feb. 21.
“Montgomery County is considered a top-tier market for Freddie Mac’s Small Balance Loan program, which allowed the owner to secure and lock in a very aggressive interest rate and terms for his property over the course of the next 10 years with the first three years allowing interest-only payments,” O’Grady said. He noted that the loan will provide a “substantial increase” in monthly and annual cash flow for the owner.
