by Adelina Osan, Associate Editor
Knoxville, Tenn.—Berkadia recently announced the $10.1 million financing of a 223-unit multifamily community located in Knoxville, Tenn. The deal facilitated the acquisition and complete renovation of The Element at Cedar Bluff, formerly the Warren House Apartments.
Corby Chaffin, senior director of the Houston office negotiated the floating rate interim loan for the borrower, SCBP Knoxville Associates LLC, a partnership between Springer Capital and Brookside Properties. The loan was originated through Latitude Management Real Estate Investors, a Southern California-based institutional debt fund specializing in bridge lending.
“Latitude is an excellent capital partner for this transaction as they quickly recognized the value-add opportunity and were able to provide a financing structure congruent with the borrower’s business plan to reposition the asset,” Chaffin said in prepared remarks.
The Element at Cedar Bluff sits on nearly 12 acres of land and was 93 percent occupied at the time of the sale. With studio, one- and two-bedroom floorplans, the property offers a range of amenities for residents such as 24-hour laundry facilities, on-site maintenance, dog walking area and grill stations. A $5 million renovation program is currently underway at the property to add a resort-style swimming pool and a 24-hour fitness center to the current amenity package.
“The Knoxville market and surrounding area has an abundance of strong retail and employment drivers, which lends itself nicely to a Class A rehab of this 80’s vintage asset,” added Tom Farnoly, principal of Springer Capital. “We’re excited to complete the property’s transformation.”
Image courtesy of The Element at Cedar Bluff