(To read more on the multifamily market, click here, and to read more on the debt and equity markets, click here.)
CHICAGO-Multifamily building owners have avoided rising interest rates, as they have purchased or refinanced properties with loans below 6%. Meridian Capital Group recently arranged nearly $15 million in loans, all but one on North Side properties.
A 64-unit building at 930 W. Winona St. was refinanced for $4.2 million, at a 5.75% interest rate over the seven-year term. In addition, Meridian Capital Group negotiated two years of interest-only payments on the loan, which dovetails with a Cook County Class 9 property tax break.
A 63-unit vintage building at 612 W. Patterson Ave. was refinanced for nearly $3.6 million, with a five-year loan at 5.5%. The deal, negotiated by Meridian Capital Group's Tannie Schnell, includes one year of interest-only payments to the lender, Independence Community Bank. It replaced a mortgage from MB Financial Bank used to acquire the building nearly a year ago for $5 million.
The interest rate was 5.32% on a five-year, $2.7-million mortgage on a 57-unit building at 5050 N. Kenmore Ave. The money came from Independence Community Bank.
A 45-unit building at 4440 N. Wolcott Ave. was refinanced for $2.4 million. The five-year loan, negotiated by Schnell and Joseph Schwimmer, was at a 5.5% interest rate. A limited liability corporation paid $2.3 million for the Ravenswood neighborhood property in 2001, property records show.
A 16-unit building at 4456 N. Maplewood Ave. was refinanced for $800,000, with a 5.75% interest rate on the five-year loan. Schnell arranged the loan, which is expected to be used by the nine-year owner to upgrade the units.
On the South Side, the interest rate was 5.5% on a five-year mortgage on a 34-unit building at 7748 S. Kingston Ave. The $1.2-million mortgage comes from Astoria Federal, according to property records.
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