BWE, a national commercial and multifamily mortgage banking company, announced that it has secured a $20,052,000 loan to provide permanent financing for Lake Place, a 110-unit luxury active adult community in Chanhassen, Minnesota, part of the Minneapolis metropolitan area.
Lundat Kassa, vice president in BWE’s Washington, D.C. office, originated the financing through Freddie Mac on behalf of Silver Creek Equity, a MN-based development company. The loan has a 10-year term with a 35-year amortization period and five years of interest-only payments and was secured to close out a high-interest rate floating rate construction loan.
“When our client approached us about refinancing Lake Place, we worked diligently and swiftly to help them pay off their high interest loan prior to the loan maturity while maximizing proceeds and reducing sponsor’s cash outlay by strategically timing rate lock with lease-up completion and concession burnoffs. We were also able to quickly navigate Freddie Mac’s new and stringent requirements for first-time borrowers, which was critical in achieving the borrower’s closing timeline needs” said Kassa. “At BWE, we’re committed to helping our partners across the country navigate the complexities of agency borrowing.”
In addition to being restricted to active adults aged 55 or older, Lake Place also has 50 units set aside for residents earning 60% or below of the area’s median income through a TIF agreement while the remaining units are market rate. Amenities at the property include a clubhouse, fitness center, pickleball court, patios, pet wash, bike room, library, creative arts studio, storage units and underground garage parking. Units feature a washer/dryer and a balcony or private patio.
“BWE were excellent partners as we navigated securing a Freddie Mac loan,” said Craig Hanson, principal at Silver Creek Equity. “They promised and delivered the financing on a tight timetable, all while walking us through the complex requirements for first time Freddie Mac borrowers. BWE made what could have been a complicated borrowing process simple and easy for us.”
BWE stands as a national, full-service commercial and multifamily mortgage banking company committed to elevating real estate financing. Putting clients’ goals first, our experienced and trusted advisors offer comprehensive capital solutions by combining enduring debt and equity relationships with unparalleled local market insights across our 40+ offices and national servicing platform.
