Dealmaker: Maverick Commercial Mortgage Closes $31M in Multifamily, MHC Loans

Maverick Commercial Mortgage, Chicago, closed a $12 million bridge loan and a $2 million historic tax credit transaction on McCurdy Apartments, a 113-unit multifamily building in downtown Evansville, Ind. 

The Kunkel Group, Evansville, Ind., is renovating the former hotel property to meet historic tax credits standards. A national tax credit firm purchased the credits. 

Maverick Commercial Mortgage President Ben Kadish said the non-recourse loan was funded while the building remained under renovation to allow the tax credit investor to invest into a newly formed LLC per the rules governing historic tax credits. The senior loan included provisions to allow additional funding based on achieving net cash flow hurdles during the loan term. 

Kadish said the loan paid off the construction loan on the property and set aside sufficient reserves to complete construction. “Construction commenced in November 2015 and the units should be rented within a 12-month timeframe,” he said.

Kadish noted that downtown Evansville is experiencing a growth spurt with several projects underway, including a new Indiana University medical school, a new 241-rooms Doubletree Hotel and a new casino under construction.

K.C. Cohen, Esq., Indianapolis, represented the borrower. 

Maverick Commercial Mortgage also closed $17.05 million on two manufactured housing communities in Portage, Ind. and Colorado Springs, Colo. K.C. Cohen represented the borrower.

Arthur Tuverson, Managing Director with Pillar, originated a $12.05 million fixed-rate 10-year Fannie Mae loan to refinance Pleasant Valley MHC Pleasant Valley MHC in Portage, Ind. and a $5 million fixed-rate seven-year Fannie Mae loan for Cheyenne Mountain Estates MHC. Cheyenne Mountain Estates MHC in Colorado Springs, Colo. 

“Pillar originated the Pleasant Valley refinance loan to reduce the interest rate on an existing loan,” Tuverson said. “Cheyenne Mountain Estates was a similar refinance of an existing loan. Not only did Pillar reduce the interest rate, we also increased the loan amount to allow the borrower to resurface streets across the entire Cheyenne Mountain Estates community and to buy homes for additional lease up.”