BWE, a real estate firm, has successfully obtained a $20 million loan to provide permanent financing for Lake Place. This luxury active adult community is located in Chanhassen, Minnesota and is part of the Minneapolis metropolitan area.
The financing was originated by Lundat Kassa, vice president at BWE’s Washington D.C. office. The loan was secured through Freddie Mac on behalf of Silver Creek Equity, a development company based in Minnesota. It has a 10-year term with a 35-year amortization period and five years of interest-only payments.
The purpose of this loan is to pay off an existing high-interest floating rate construction loan that was used to build Lake Place in 2023. The project had completed its lease-up during the underwriting process for this new loan.
Kassa stated: “When our client approached us about refinancing Lake Place, we worked diligently and quickly to help them pay off their high-interest loan before it matured.” He also mentioned that they were able to maximize proceeds while reducing the sponsor’s cash outlay by strategically timing the rate lock with lease-up completion and concession burnoffs.
This successful financing deal highlights BWE’s expertise in securing favorable loans for their clients’ projects.
