M&T Realty Capital Corporation provided a $15.145 million Fannie Mae loan to refinance an 80-unit active adult community in St. Charles, Illinois (Chicago MSA). Steven Muth and Matthew Pipitone led the financing for M&T, while Eric Johnson of Ziegler arranged the deal. The loan came with a 10-year term and a fixed interest rate below 4.00%. It was structured with five years of interest-only payments, followed by a 30-year amortization schedule. Also, the loan carried a declining prepayment schedule, which provides the borrower, who remains undisclosed, additional flexibility in future years.
The community being refinanced was extremely well occupied at 98.8% at the time of closing, and ownership had invested significant capex in the last several years to improve the property’s landscaping, HVAC systems and resident units upon turnover. But the Fannie Mae loan also provided over $5,000 per unit in funding for future capex.
