New York, NY — December 14, 2022 — Lument announced today the closing of a Fannie Mae loan totaling $73.4 million to refinance a portfolio of 47 multifamily apartment buildings located on the South Side of Chicago. Director Nicholas Diamond, a director at Lument, led the transaction. The sponsor was Chicago-based Icarus Investment Group and the deal was brokered by Jonathan Bodner from Two Bins Capital.
The transaction utilized Fannie Mae’s Structured Adjustable-Rate Mortgage (SARM) product, which allowed the sponsor to consolidate six loans—several bank loans, a bridge loan, and an agency loan—into a single Fannie Mae loan with a low interest rate. The loan features a 10-year term, five years of which are interest only, and 35-year amortization.
“This deal had tremendous headwinds, given the number of properties and rising interest rates,” said Diamond. “Working together with Fannie Mae and the sponsor, we were able to structure the deal with favorable terms and sizing parameters that allowed us to preserve millions of dollars in proceeds.”
Started in 2012 by David Pezzola, Icarus focuses on invigorating neighborhoods in American cities where the potential is high but public misconceptions remain. To date, Icarus has acquired over 2,000 units and created affordable, attainable, reliable housing for residents.
The portfolio consists of 47 apartments with a total of 793 units on over 10.5 acres. Unit mixes include studio, one-, two-, three-, and four-bedrooms. There are also 25 commercial units in the portfolio.
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, investment sales, investment banking, and investment management solutions. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.