Ziegler and M&T Realty Capital Corporation partnered to secure a Fannie Mae refinance on an independent living community in St. Charles, Illinois. Owned by Essex Communities, the community obtained a $15.145 million loan with a 10-year term and fixed interest rate of 3.99%. There are five years of interest-only payments, followed by a 30-year amortization. Essex also benefits from a declining prepayment schedule.
Essex originally developed the 80-unit community in 1999 under a not-for-profit, entrance fee model sponsored by the City and Township of St. Charles. But Essex decided to purchase the building in 2019 for approximately $12.8 million, or $160,000 per unit, and convert it to a market-rate rental community.
