Mag Mile Capital Announces $21.3 Million Loan Closing for the New Construction and Development of Multifamily Apartments in Chaska, MN.
MINNEAPOLIS, July 21, 2022 /PRNewswire/ — Mag Mile Capital proudly announced that Cody Harper, VP of Originations, and Matt Weilgus, SVP and Head of Originations have closed a $21.3 million, ten-year, construction-to-permanent loan to build Clover Ridge Apartments, a four-story, 122-unit apartment building above one subterranean parking garage level located west of Clover Ridge Drive, south of Pioneer Trail, and northly adjacent to the bicycle and pedestrian path. “We look forward to a successful project for the City of Chaska and surrounding communities” said Vishal Dutt, Managing Principal of AV Development. The anticipated delivery and opening to the public is autumn 2024.
Clover Ridge Apartments will be furnished with a desirable amenity package that includes indoor, covered, and surface lot parking, on-site property management and leasing office, secure entry and surveillance systems for safety, fitness room, community room with full kitchen, pet play area with washing station, and bicycle rack and storage room. The unit mix features an assortment of open floor plans and unit sizes from studio to 3-bedroom/2-bath that feature a center kitchen island, stainless steel appliances, in-unit washer/dryer, private balcony or walk out patio, and ample storage options.
Mag Mile Capital received the initial $18 million, 75% loan-to-cost construction loan financing request directly from the developer. Not only did Mag Mile Capital successfully place the loan with a local Minnesota bank, a repeat capital source, but Mag Mile Capital also secured $3 million of additional loan proceeds that financed 80% of the total cost budget during a rapidly escalating inflationary environment. Cost escalations of nearly 10% added to the final cost budget and provided an additional final-hour challenge, the bank had a lending limit of $20 million, yet it resourcefully sold $1.3 million of additional loan proceeds to a participating bank and without additional equity required from the sponsor. “Amidst continued supply chain concerns, 7.0% YTD measured inflation, and additional interest rate hikes anticipated by the Fed in 2022, the remarkable 3.5%, fixed interest rate pricing and loan terms we negotiated for the borrower held firm and the closing smoothly occurred, a testament to our strong local lending relationship,” exclaimed Cody Harper.
Mag Mile Capital is a boutique firm that offers preferred access nationwide to high-leverage, non-recourse, commercial real estate bridge loans and permanent mortgages with cash out for hotels, self-storage, multifamily, industrial, retail, office, and other commercial real estate property.
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