Berkeley Point, ARA Newmark Team Up on $212M Portfolio Refi
The firms secured a seven-year, floating-rate loan from Freddie Mac to refinance a nine-property portfolio for their longtime client Steadfast Cos.
Bethesda, Md.—Sometimes two is better than one. In this case, Berkeley Point Capital teamed up with ARA Newmark to refinance a nine-property, 2,106-unit portfolio for longtime client Steadfast Cos. and Steadfast Income REIT, one of the firm’s public, non-listed REITs.
“It was great to see the Berkeley Point/ARA team come together. Their participation was critical to the success of this refinance, which leaves Steadfast Income REIT well positioned to execute on its strategic plan,” said Tim Middleton, CIO of Steadfast Cos.
The financing totaled $211.9 million and consisted of a seven-year floating rate debt from Freddie Mac. The adjustable-rate loan closed in July 2016.
Some of the goals of the refinancing were to take advantage of lower rates, reduce overall borrowing costs, increase cash flow and smooth out maturities, Middleton told MHN.
The properties in the portfolio are located in Chicago, Kansas City, Mo., Nashville, Tenn., Cincinnati, Columbus, Ohio, Birmingham, Ala., and Dallas suburbs. They’re nine Class A and B properties built between 1911 and 2013. Units range from one to three bedrooms in garden-style and walk-up buildings and most units were recently renovated.
“The portfolio provides for affordable, workforce housing for the various communities in which they are located, That aspect also made the financing very attractive to both Fannie Mae and Freddie Mac, which competed fiercely for the financing,” Berkeley Point Capital Managing Director Charlie Haggard told MHN.
Haggard and ARA Senior Managing Director Matt Greer led the financing for Berkeley Point out of its office in Irvine, Calif. The two firms are now under the common ownership of Cantor Fitzgerald companies, and Haggard and Greer have worked extensively with Steadfast in recent years as Steadfast expands its multifamily portfolio.
The companies are also “continuing to look for opportunities to partner in an effort to better serve (their) clients,” Haggard said.