As the real estate world contends with high interest rates and a challenging lending environment, Ascent developer New Land Enterprises has secured a $98 million refinancing loan.
Ascent, a 25-story, 259-unit luxury apartment tower located at 700 E. Kilbourn Ave. in downtown Milwaukee, is the tallest mass-timber and concrete hybrid building in the world. Construction on the building was completed in 2022.
The $98 million refinancing loan from Barings Real Estate is a three-year loan, with a floating interest rate.
Among a number of factors, New Land chose the loan structure because the firm anticipates that the interest rate environment will be more favorable in the near future, when it’s time to refinance the building again with a longer-term loan.
“The size of the transaction is unusual for the Milwaukee market,” said Tim Gokhman, managing director of New Land Enterprises. “Traditionally, getting institutional capital has been more of a challenge for a market like Milwaukee because it’s just not that big and it doesn’t have a lot of institutional players.”
Gokhman noted that, amid a challenging lending environment, securing the refinancing was tricky.
“This signals just how high-quality this asset is,” he added.
Ascent is currently around 95% occupied, according to Gokhman.
The refinancing was arranged by JLL Capital Markets, which also arranged $87 million in construction financing for Ascent in 2020.
“We are thrilled to be a part of this team to not only add a unique luxury living option to Milwaukee, but to advance mass timber development in the U.S., which is an urban landscape game changer that uses sustainable materials that are environmentally impactful on many levels,” said JLL managing director Timothy Joyce, in the press release.
Joyce and JLL’s Trent Niederberger represented New Land for the refinancing.
