CHICAGO-Newcastle Ltd., based here, has secured $21.9 million in financing for a multifamily portfolio. The 11-property portfolio has a total of 439 apartment units, says Cohen Financial partner Steve Roth, who originated the transaction.
The term of the loan is 10 years and the loan-to-value is 60%, Roth tells GlobeSt.com. The interest rate was not disclosed. The lender is a national life insurance company.
All of the properties are located in Chicago. The addresses of the properties were not disclosed. The portfolio consists of "older, vintage buildings" which are more than 95% occupied, Roth says. Newcastle had interim financing to acquire the properties and refinanced to replace it with permanent financing. The financing was a good investment for the life insurance company because the portfolio has a good sponsor, low loan-to-value and has high equity in addition to the properties being located in stable markets, Roth says.
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