Grandbridge Closes $5.6 Million in Twin Cities Multifamily Refinances

Published On: 12.02.10

MINNEAPOLIS -- The Minneapolis office of Grandbridge Real Estate Capital recently originated and closed two first mortgage multifamily loans totaling more than $5.6 million.  Tony Carlson and Dave Rasmussen originated both transactions.

The first loan is secured by Sedona Hills, a 102-unit Class B apartment complex in Golden Valley, Minn.  The borrower purchased the property approximately 10 years ago and Grandbridge successfully worked with the borrower to refinance the property’s maturing Fannie Mae loan.  The new nonrecourse loan was also financed with Fannie Mae and features a 10-year term, 30-year amortization, and a fixed interest rate of 4.75 percent.  The refinance allowed the borrower to cash out some equity and greatly improve cash flow.  The borrower was very pleased with the new loan and said, Grandbridge successfully delivered all the terms they outlined up front.  As a result my interest rate was lowered more than 2.5 percent and the property cash flow greatly increased.”

The second loan is secured by a 36-unit apartment complex in Elk River, Minn.  This transaction also refinanced the borrower’s maturing loan and funded at 65 percent of appraised value.  The borrower wanted the absolute lowest interest rate possible and thus Grandbridge structured a five-year loan term.  This loan term takes advantage of the steep yield curve which discounts shorter terms and enabled the borrower to lock his interest rate at 4.04 percent.  In addition, Grandbridge worked with the existing lender to successfully waive an existing prepayment penalty, thereby saving the borrower more than $11,000.  This loan was funded through a Fannie Mae Small Loan Program loan lender.

As a Fannie Mae Delegated Underwriting and Servicing (DUS®) lender, Grandbridge has access to the most attractive multifamily financing debt available in the market today. 

Charlotte, N.C.-based Grandbridge has a broad investor base that includes insurance companies, pension fund advisors, commercial banks and capital markets investors, as well as a proprietary lending platform.

The company is a Fannie Mae DUS lender and a Freddie Mac Program Plus® Seller/Servicer and Targeted Affordable Housing lender. Grandbridge is also a Multifamily Accelerated Processor (MAP) and LEAN healthcare approved active participant in products insured by the Federal Housing Administration (FHA). The company arranges permanent commercial and multifamily real estate loans; services loan portfolios; and provides asset and portfolio management, as well as real estate brokerage services. Grandbridge has a current servicing portfolio of $24.5 billion and represents approximately 100 capital providers.

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