ST. LOUIS—Oak Grove Capital has secured $23.2 million in Fannie Mae loans for the acquisition of Pine Tree Club Apartments and Westbrooke Village Apartments, two market-rate apartment communities in St. Louis.
The fixed-rate loans both carry seven-year terms, two years of interest-only, and four years of yield maintenance. Both communities were built in the mid 80's and have a combined 402 units.
“These assets were under managed, and needed significant capital improvements in order to make the deal happen,” said Scott Streiff, vice president at Minneapolis-based Oak Grove Capital, in a prepared statement. He was not available for comment by press time, but GlobeSt.com will provide an update. “We brought Fannie Mae to each property so the borrower could communicate their vision for each asset, and have both Oak Grove and Fannie Mae become comfortable with the proposed repositioning and exit strategy.”
"The transaction took seven months to complete from start to finish,” added Rick Wise, managing partner at Oak Residential Partners. “The professionals at Oak Grove Capital and Fannie Mae stayed with us throughout. We were humbled by their patience and commitment to these deals, as well as to Oak Residential.”
"Oak Grove proved to be a great partner on a deal that had many unique and difficult circumstances,” said Adam Levine, also managing partner at Oak Residential Partners. “They were able to get creative on tough deal issues which ultimately lead to a successful closing. The loan terms and structure obtained will allow us to successfully implement our business plan for both assets.”
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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.
