Monitor Finance has secured a total of $199.1 million in 14 loans for the recapitalization of a portfolio comprising 17 assets across Iowa, Nebraska and South Dakota. Northmarq arranged the financing on behalf of the borrower through its in-house Fannie Mae DUS platform.
All 17 properties had existing fixed-rate agency debt with roughly six to eight years of loan term remaining, which have now been reset into new 15-year fixed-rate debt on an interest-only basis, according to Brett Hood, managing director at Northmarq. The loans range from $5.6 million to $36.8 million and each represented a maximum loan-to-value ratio of 70 percent.
Some of the largest loans included $36.9 million for the 485-unit Camelot Village in Omaha, Neb.; $24.2 million for the 264-unit Platinum Valley Apartments in Sioux Falls, S.D.; $21 million for the 224-unit Village at Westchester in Des Moines, Iowa, and $16.3 million for the 202-unit Westwood Apartments in Omaha, Neb.
A more affordable Midwest
The portfolio totals 2,784 units, all of which qualify as “mission-driven”, having affordable in-place rents. Moreover, 98 percent of the units qualified as affordable for individuals earning 60 percent of the Area Median Income. Twelve of the properties are located in Greater Des Moines, Iowa, two are located in Davenport, Iowa, two are located in Omaha, Neb., and one in Sioux Falls, S.D.
Hood led the team that secured the financing, closing all loans between 45 to 60 days. In December 2020, Hood also arranged the recapitalizations of five other Monitor Finance assets in the Midwest, comprising two communities in Kansas City, Mo., and three in Davenport, Iowa. The total recapitalization was roughly $89 million in combined FHA debt.