Dealmaker: Pillar Originates $48M in Indianapolis, Miami
Pillar, New York, originated $36 million with Freddie Mac for the Oaks of Eagle Creek Apartments, a 632-unit multifamily property on Indianapolis’ northwest side.
Pillar Director Joe Markech and Associate Brooke Jackson originated the 10-year fixed-rate loan with a 30-year amortization schedule and 80 percent loan-to-value.
Markech said the Indianapolis-based sponsor plans to invest $3,000 per unit to renovate the property, currently 98 percent leased at market rates. David Ross, principal and co-founder of Crossroads Realty Advisors, Carmel, Ind., brokered the deal.
“Freddie Mac was extremely responsive to this acquisition deal,” Markech said. “They liked that 93 percent of the property qualified under their affordability guidelines, which offered them a very attractive investment.” He noted that the fully-leveraged loan includes three years of interest only.
In Miami, Pillar Healthcare Finance team Joshua Hausfeld and Evan Hom originated a $11.9 million HUD 232/223(a)(7) fixed-rate, fully amortizing 35-year loan for borrower Assistance to the Elderly Inc. The not-for-profit developer refinanced the Residential Plaza at Blue Lagoon, a 14-story 350-unit senior care facility on northwest 7th Street in Miami.
“The main objective of the transaction was to lower interest rate and debt-service payments,” Hausfeld said, noting that the new loan will save Assistance to the Elderly more than $88,000 annually. “This was a unique structure, and we had to address a number of issues before we could close the loan. As the facility is owned and operated by a single-asset not-for-profit borrower, HUD had to waive its non-operating requirements. Because there are several cell phone towers on top of the property, we had to work with the related cell providers to make sure all agreements were HUD compliant.”
Hausfeld said the borrower plans to convert the top two floors into a dedicated memory care unit. “We also were able to secure a repair escrow of $140,000 to facilitate the renovations of these floors,” he said.
