INDIANAPOLIS—Magna Properties has gained an $11.6 million refinance loan for the 448-unit Greentree Apartments here at 2524 Tamarack Lane.
Magna purchased the property in 2007. The 35-year, non-recourse FHA-insured loan was funded by Huntoon Hastings Inc. a wholly-owned subsidiary of Johnson Capital. The new debt, which was used to refinance an existing FHA insured 223(f) loan with a large prepayment penalty, is fully amortizing and carries a fixed interest rate in the low 3 percent range, according to Scott Graber, a senior vice president with Johnson Capital.
“This loan is win-win for all of the stakeholders,” Graber says in a statement. “The Department of Housing and Urban Development reduces the risk exposure of its portfolio while the borrower enjoys higher positive cash flow and greater insulation from potential market swings in rents. The lender, Huntoon Hastings, gets the privilege of servicing a long-term, low interest rate loan with a model borrower that really cares about its tenants and the condition of its properties.”