Dealmaker: NorthMarq Secures $84M in Fannie Mae, Freddie Mac Financing

NorthMarq, Minneapolis, arranged $83.9 million in Fannie Mae and Freddie Mac financing for apartment properties in Missouri and North Dakota.

The Barton Apartments

The firm’s St. Louis office arranged $50.5 million in acquisition financing for 228-unit The Barton Apartments in Clayton, Mo.

NorthMarq Senior Vice President and Managing Director David Garfinkel arranged the 10-year financing through NorthMarq’s in-house Fannie Mae team.

In Grand Forks, N.D., Senior Vice President Brett Hood from NorthMarq’s Chicago office secured $33.4 million in Freddie Mac funds for four multifamily properties. The collateral encompassed 691 units across four workforce housing communities with in-place average rent structures deemed affordable and qualified as mission-driven under the agency’s affordability directive.

The subject properties included Forest Park Apartments (269 units), Valley Park Manor (168 units), Southwind Apartments (164 units) and Landmark Estates (90 units).

The financing allowed for four cross-collateralized loans ranging from $2.8 million to $15.8 million, representing approximately 78 percent of the sponsor’s portfolio purchase price. The 15-year loans included seven years of interest-only payments followed by 30 years of amortization.

“The transaction enabled the sponsor an opportunity to acquire a well-maintained, institutionally-operated, historically well-occupied, diversified portfolio with cash flow stability and positive underlying revenue trends,” said Hood. “The nature of Freddie Mac’s execution allowed for an effective and timely closing process, an impressive 40 days from application to funding across four loans. The borrower also utilized Freddie’s index-lock feature during the due diligence period.”