D2 Capital Advisors Arranges $11,500,000 Financing for Multifamily Asset in Minneapolis, MN

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Sep 07, 2021, 14:25 ET

MINNEAPOLIS, Sept. 7, 2021 /PRNewswire/ -- 44th at Harriet LLC has secured $11,500,000 in bridge financing for LH44: a 36-unit multifamily building located at 2618 W. 44^th Street in Minneapolis, MN.

The financing was arranged by D2 Capital Advisors' Jack Cortese and David Frankel. The financing was provided by a New York based debt fund.

The luxury boutique apartment community is located in the heart of the coveted Linden Hills neighborhood and offers direct views and access to Lake Harriet.

D2CA was brought to this deal in June to achieve a maximum cash-out bridge financing that also offered flexibility for an eventual sale and could close quickly for the property that was still in lease-up.

D2CA worked swiftly to provide multiple options for their client to evaluate; ultimately delivering an $11,500,000 bridge loan at more than 80% loan-to-cost for the property that was then 72% occupied. The loan proceeds provided cash-out to the Borrowers, while also fully retiring the existing construction debt. The loan is freely prepayable, offering maximum flexibility to pursue the sale as stabilization is rapidly approaching. The loan closed in 3 weeks from application execution to funding.

"D2CA delivered an efficient financing structure that provided us with the cash-out necessary to pursue our next development while maintaining the flexibility necessary to sell LH44 in the very near future all while meeting our closing deadline," said John Gross of 44^th at Harriet LLC.

While the closing process was fast and simple there were some initial challenges that had to be overcome.

"There was a ton of interest in this deal from traditional bridge lenders looking to just retire the construction debt – the challenge was getting them to provide a significant cash out on a new product that was still in lease-up," said Jack Cortese, VP of D2 Capital Advisors.

Adding to that challenge was the fact that LH44 is the first apartment building to be approved and delivered within a block of Lake Harriet in over 50 years. "I used to think barriers to entry were good for new development," joked Cortese, "but this resulted in a lack available comps, which many lenders tend to be overly reliant on, fortunately we were able to overcome this as well due to the superior product and location of this asset."

Linden Hills is home to vibrant local restaurants, neighborhood retail, and the timeless beauty of Lake Harriet. The newly developed LH44 offers residents an upscale but accessible luxury experience. Between the high-end finishes, $1 Million Lake Harriet views, and access to the immediate commercial and urban core, it's the prefect place for those with a balanced lifestyle to call home.

Josh Talberg of JLL is currently marketing the building for sale, which is now over 80% occupied.

ABOUT D2 Capital Advisors

D2 Capital Advisors is the transaction advisory division of D2 Organization that arranges and structures real estate debt and equity financing for developers and investors throughout the United States.

For more information, please visit www.d2organization.com

SOURCE D2 Capital Advisors