ST. PAUL, MN – Oak Grove Capital, a leading national provider of real estate financial services, recently originated one of the first Fannie Mae Near Stabilization Loans for Boatworks Commons, a mixed-use property in White Bear Lake, MN which was completed in early 2015. This $14 million fixed-rate loan refinanced the property’s construction loan.
Under the new Fannie Mae Near Stabilization Program, the sponsor, At Home Apartments, locked rate and fully funded the loan with the property at 60 percent occupancy, rather than the usual 90 percent occupancy requirement. The property expects to obtain stabilized occupancy at a 1.25x DSCR within 120 days of rate lock.
“The Boatworks Commons transaction allowed us to provide our longtime friends and clients from At Home Apartments the ability to secure attractive long term non-recourse agency debt prior to full stabilization, with the property’s physical and economic occupancy standing at 60%,” said Scott Streiff, Vice President at Oak Grove Capital.“ We worked through many moving hurdles including a Reciprocal Easement Agreement and a Registered Land Survey, which needed to be negotiated and approved in order for us to close and secure the 10-year term loan with three years of interest only, and a 75 percent LTV.”
Boatworks Commons represents the newest development in White Bear Lake and is the only multifamily property situated on the lake. The site includes 85 unique apartment units, a boat dock area, a sheltered public plaza, a restaurant building, a fitness center, private and public parking, as well as a public community room and bathrooms.
Since the mixed-use property consists of both private and public spaces, At Home Apartments worked closely with the City of White Bear Lake, MN while developing the site. The City also contributed funds for the construction of the public spaces at the property.
“We selected Oak Grove and Fannie Mae to refinance our newest development project, Boatworks Commons, because of our long standing relationship with both parties and history of successful closings together. Fannie Mae’s new Near Stabilization Program was a good fit for our project since we were still leasing up and the Program allowed us to rate lock earlier than other refinancing options we researched. Securing a long-term, fixed-rate loan early in the stabilization process is key to the financial success of a new asset,” said Leanna Stefaniak, Director of Business Development & General Counsel, At Home Apartments. “Scott Streiff and his team of underwriters, counsel and closers were very dedicated to making sure the transaction closed smoothly and on-time. Their collective expertise and commitment was invaluable.”
About Oak Grove Capital: Oak Grove Capital is a nationwide multifamily mortgage lender specializing in the structuring, origination, and asset management of affordable and market rate multifamily apartment complexes as well as, senior housing and healthcare facilities throughout the country. Headquartered in St. Paul, MN, Oak Grove Capital services a commercial loan portfolio in excess of $10 billion and offers a product line consisting of Freddie Mac Program Plus®, Fannie Mae DUS®, and FHA (MAP and LEAN), as well as a variety of other commercial real estate funding options. Regional offices are located in Los Angeles, Dallas, Tampa, Chicago, Birmingham, Columbus, and Bethesda. For more information, visit www.oakgrovecap.com