ARC Multifamily Lands $67M Refi for Georgia Community
The financing includes a senior loan paired with preferred equity.
ARC Multifamily Group has obtained a $58 million senior loan and $9 million in preferred equity investment for the refinancing of The Blakely, a 420-unit community in Pendergrass, Ga., an Athens submarket.
CBRE represented the borrower in the deals. Fannie Mae provided the five-year, fixed rate note, while Pensam Capital was the preferred equity investor.
Previous financing for the property included a $62.4 million bridge acquisition loan originated in November 2022 by Jackson National Life Insurance Co., according to Yardi Matrix information. ARC Multifamily purchased the asset from a private investor.
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The effect of increased rates has been visible for multifamily housing finance for the past few years. After cutting rates 100 basis points by late 2024, the Federal Reserve Bank has now hit pause on subsequent changes for the time being.
A four-phase development
The community sits on more than 40 acres at 542 Glenn Gee Road, within walking distance of downtown Pendergrass. Downtown Athens is 30 miles away.
Built in four phases, the property came online in July 2023 and encompasses 10 three-story buildings. The unit mix consists of one- to three-bedroom floorplans, ranging between 855 and 1,444 square feet. Apartments have private balconies or patios, as well as walk-in closets.
Common-area amenities include two swimming pools, a clubhouse, a gaming room, a fitness center, a dog park and a playground. The community also has EV charging stations, an outdoor kitchen and multiple fire pits.
CBRE Capital Markets’ Debt & Structured Finance Senior Vice Presidents Blake Cohen and Charlie Clark brokered the deal on behalf of the borrower.
