INDIANAPOLIS, IN- Magna Properties announced this week that the firm had secured an $11.6 million refinance loan for their 448-unit Greentree Apartments in Indianapolis at 2524 Tamarack Lane.
Magna has owned Greentree since 2007. This FHA-insured loan is for 35 years and funded by Huntoon Hastings Inc., a subsidiary of Johnson Capital, which specializes in arranging financing through the FHA, Fannie Mae and Freddie Mac.
The new loan will refinance an FHA-insured 223(f) loan, is fully amortizing and has a fixed-interest rate in the low 3 percent range, according to Scott Graber, a senior vice president with Johnson Capital.
“The new loan was able to absorb the large prepayment penalty” attached to the original loan, Graber told GlobeSt.com. Furthermore, reducing the interest rate will help the owner meet their debt service and protect them from swings in the housing market. Although Greentree is a market-rate property, it was “designed to reach the workforce” and remain affordable.
“It's been pretty strong for FHA loans in this market, they're the dominant player,” Graber added. And refinancing these loans has become quite popular around Indianapolis due to “the continued downward pressure on the interest rate attached to FHA loans.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
