Grandbridge Minneapolis Finances More Than $62.6 Million in Minnesota Commercial and Multifamily Transactions

Published On: 12.19.15

Minneapolis, Minn. — Minneapolis-based Grandbridge Real Estate Capital Vice President Tony Carlson recently closed commercial and multifamily transactions totaling more than $62,630,000. The closed loans were secured by a variety of property types including multifamily, office, retail, single tenant and special use.

The most recent transaction was a $1,330,000 loan to facilitate the refinance of a retail property in Rochester, Minn. Funding for the loan was provided through one of Grandbridge’s correspondent life insurance company relationships. The transaction featured a 10-year term, 20-year amortization and closed with a low fixed interest rate. The loan allowed the borrower to refinance their existing debt while providing cash out to the ownership group. The loan also offers an automatic rate reset after 10-years, allowing the borrower to mitigate their refinance risk.

“Grandbridge successfully structured this transaction to meet our repeat client’s objectives which included a very competitive interest rate, secondary financing flexibility, and funding on time to meet the obligations of their maturing loan,” explained Carlson.

Carlson originated a $13,500,000 first mortgage loan secured by a 210-unit multifamily property in St. Cloud, Minn. Funding for the fixed rate loan was provided by a life insurance company exclusive to Grandbridge and featured a 15-year term, 15-year amortization, and a very low fixed interest rate below 4 percent. The new, nonrecourse loan allowed the borrower to retire existing debt and substantially lower their interest rate.

The class A property features an abundance of amenities including multiple community and billiards rooms, pool and hot tub, and very large nicely finished units. The community offers residents a variety of unit types and styles including traditional apartment units, townhouses and patio homes.

Grandbridge financed a $12,100,000 office property. The first mortgage loan was secured by a 92,000 square foot office building in downtown Rochester, Minn. Funding for the fixed rate loan was provided by a life insurance company and featured a 15-year term and a very low fixed interest rate below 4 percent. The nonrecourse loan enabled the borrower to retire existing debt and substantially lower their interest rate. The property, connected to the city’s pedestrian skyway and tunnel systems, is ideally located in downtown Rochester and is occupied by a variety of tenants. 

“The rate, locked at application, featured a forward rate lock, thereby eliminating interest rate risk during the closing process, better meeting borrower’s objectives,” explained Carlson.

Grandbridge closed a $6,000,000 first mortgage loan secured by a 62,308 square foot retail center in Shorewood, Minn. This acquisition financing, originated Carlson, featured a 10-year term, 25-year amortization, and a very low fixed interest rate.  The property features a diversified rent roll of fifteen tenants and is well located off Highway 7. Grandbridge facilitated a timely closing process in step with the borrower’s acquisition closing deadline. Funding for the fixed rate loan was provided by a life insurance company.

Carlson also originated and closed two loans totaling $10,300,000 secured by two multifamily properties in the Twin Cities area. Both properties, totaling 225 units, are located in suburbs of Minneapolis and feature a variety of unit types and amenities. Funding was provided by two different lenders, a life insurance company and an agency lender. Both loans were nonrecourse and featured long-term fixed rates. Grandbridge successfully worked with the borrower to structure each transaction to fit the unique funding objectives of each property. 

“The loans funded on time and we were able to structure the fundings to meet our first-time borrower’s objectives,” explained Carlson.

Carlson closed a $5,000,000 first mortgage loan secured by a six-story, 461-stall parking garage in downtown Minneapolis. Funding for the fixed rate loan was provided by a life insurance company exclusive to Grandbridge and featured a 15-year term, two years of interest-only, and closed with an interest rate below four percent. The nonrecourse loan enabled the borrower to refinance their existing debt and significantly lower their debt service payments.

Grandbridge closed a $4,600,000 first mortgage loan secured by a four-story, 62,000 square foot office building in the Minneapolis Central Business District. Funding for the fixed rate loan was provided by a CMBS lender. The loan featured a 10-year fixed rate term with a 30-year amortization, and some interest-only. The building features recently refinished spaces that highlight the original architecture of the building in the historic North Loop district of Minneapolis. The loan was nonrecourse to the borrower and retired maturing debt.

Carlson originated and closed two first mortgage loans totaling $8.75 million. The transactions were secured by two multifamily properties in St. Cloud, Minn. Combined; the properties have 240 rentable units. Funding for both fixed rate refinance loans was provided by a bank and featured five- and seven-year terms, 30-year amortizations, and low fixed interest rates. The class B properties were 100 percent occupied at closing. Grandbridge successfully worked with the borrower to craft a financing solution to meet their objectives, including a flexible prepayment structure.     

A $1,050,000 first mortgage loan secured by a two-story, 15,200 square foot Auto Plus Auto Parts in Bloomington, Minn., was funded through a life insurance company. This fixed rate acquisition financing, originated by Carlson, featured a 10-year term, 20-year amortization, and closed with a low-four percent interest rate.

About Grandbridge Real Estate Capital LLC
Headquartered in Charlotte, N.C., Grandbridge Real Estate Capital, a subsidiary of Branch Banking and Trust Company (BB&T), arranges permanent commercial and multifamily real estate loans; services loan portfolios; and provides asset and portfolio management through its broad investor base that includes insurance companies, CMBS investors, pension fund advisors, commercial banks and capital markets investors, as well as its proprietary lending platform, BB&T Real Estate Funding.

The company is a Fannie Mae DUS® lender, a Freddie Mac Program Plus® Seller/Servicer, and an approved FHA MAP and LEAN healthcare lender. With a current servicing portfolio of more than $29 billion, Grandbridge, an S&P “Strong” rated servicer, services loan portfolios and provides asset and portfolio management nationwide for all capital providers including Fannie Mae, Freddie Mac, Ginnie Mae, insurance companies, banks and more than 250 securitizations. For more information about Grandbridge, visit Grandbridge.com.

About BB&T
As of September 30, 2015, BB&T is one of the largest financial services holding companies in the U.S. with $208.8 billion in assets and market capitalization of $27.8 billion. More information about BB&T and its full line of products and services is available at BBT.com.