Arbor has provided a $1.5 million refinancing package through Janover’s commercial real estate financing platform for 8720 Livingston, a 24-unit multifamily property in Chalmette, La.
Arranged through Freddie Mac’s Small Balance Loan program, the seven-year, fixed-rate loan closed at a 51.8% LTV with an amortization period of 30 years and a yield maintenance prepayment provision. The financing is assumable and non-recourse as is standard through the SBL program.
"We were able to lock in a rate utilizing Freddie Mac's SBL product at the perfect timing. The several rate increases that followed this transaction would have put the client's interest rate nearly a whole percent higher," said Janover's Brandon Ramineh, director of capital markets, who took point on the deal.
The property, located near St. Bernard Highway, is in a prime location – roughly 7 miles from downtown New Orleans and within walking distance of the West Judge Perez Drive retail corridor.
Units in the property share a uniform two-bedroom and two-bathroom configuration, each with approximately 900 square feet of living space, according to Realtor.com. All units come with a balcony or patio, fully furnished kitchens, a combination washer and dryer, and central air conditioning.
New Orleans, New Market Trends
Although the market has faced significant challenges in recent memory, and employment opportunities have seen a dip in the last couple of years, New Orleans is beginning to show signs of a rebound. Rising single-family home prices have pushed more residents into the rental market, which has led to increased multifamily investment. The number of units sold in 2021 rose by nearly one-third compared to the previous year.
A mid-year analysis by Berkadia showed not only a respectable 9.6% effective rent increase year-over-year, but occupancy has risen as well — up 130 basis points to 95.8%. Second quarter metrics aside, with the return of the Big Easy’s hospitality industry, most experts share a positive outlook for further multifamily investment in the area brought on by increasing employment opportunities.