Greystone announced it has provided a $27.6 million Freddie Mac loan for the acquisition of a multifamily property in Hammond, Indiana. The transaction was originated by Dan Sacks and Eric Rosenstock, both Managing Directors at Greystone, on behalf of Bayshore Properties.
The conventional Freddie Mac Capital Markets Execution (CME) Green Up acquisition loan for Tanglewood Apartments carries a 10-year term and 30-year amortization, with the first two years of interest-only payments. Tanglewood is a 384-unit Class-B multifamily property acquired for $33.5 million, and is located in the Gary metropolitan statistical area (MSA) in Northwest Indiana. The property consists of 16 three-story buildings spread across nearly 20 acres, with amenities including clubhouse, pool, sauna, fitness center, picnic areas and detached garages.
“Given the current market conditions, higher debt leverage such as on this transaction – at nearly 80% -- is harder to achieve,” said Mr. Rosenstock. “We worked closely with Freddie Mac’s team and the borrower to get everyone comfortable with the strong underwriting presented, available liquidity and necessary reserves.”
“Overall, with the Freddie Mac Green Up improvements planned to be made, the property will ultimately be more efficient and provide savings to the tenants,” added Mr. Nick Kozul, principal, Bayshore Properties. ‘We are grateful to the Greystone team for their commitment to getting this done during a pandemic, and achieving a great result for us.”