Oak Grove Gets $42M for Southview Gables

ST. PAUL—An increasing number of investors are going outside of their own markets for new investment, and many look for financing from companies with local knowledge. St. Paul-based Oak Grove Capital, for example, a national provider of real estate financial services, just originated a $42.5 million fixed-rate Fannie Mae loan for a joint venture between White Oak Partners, an investor in Westerville, OH, a suburb of Columbus, and a fund managed by Los Angeles-based Ares Management to acquire Southview Gables, a 425-unit garden-style apartment complex in Inver Grove Heights, MN, a suburb of St. Paul.

The fixed-rate loan has a 10-year term with three years of interest-only and seven years of yield maintenance, providing the borrower with additional cash flow in the loan’s early years.