CHESTERFIELD, Mo. — The $80 million WildHorse mixed-use multifamily development in Chesterfield has been refinanced after leasing to 100% occupancy in less than seven months. And its lender expects the development to “skyrocket from a performance standpoint.”
Financial services company Merchants Capital, a subsidiary of Merchants Bank of Indiana, said it has secured $71 million in total financing for WildHorse, which has 188 luxury apartment units, a 15,000-square-foot Ruth’s Chris Steakhouse with a rooftop bar and 10,000 square feet of service retail that is fully leased.
WildHorse owner Great Lakes Capital, a real estate private equity firm, finished construction in April, followed by the openings of the Ruth’s Chris and the Christina White Salon, a hair salon. A branch of financial firm Fidelity will also open to complete the retail space.
With the proceeds from the refinancing, Great Lakes Capital paid off its existing construction loan, bought out undisclosed limited partners from the original development and secured a bridge loan from Merchants that will not amortize the interest for the property prior to the permanent financing takeout. The aim for permanent financing is to take out a 35-year term loan on a fixed rate from a lender such as the U.S. Department of Housing and Urban Development.
Merchants Capital specializes in financing for multifamily housing, both new and acquisitions. But Vice President of Originations Brian Shelbourne said that WildHorse is among the most impressive developments that the company has financed, with full leasing that came so fast and its premier facilities that stand out even among newer developments.
“There’s obviously a large demand for this in the market, so we felt really fortunate to be part of the project and we think it’s going to continue to skyrocket from a performance standpoint,” Shelbourne said.
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