Blue Magma Residential has expanded its Memphis, Tenn., holdings with the acquisition of Waterview Apartment Homes, a 1,002-unit multifamily community, from CAPREIT.
The price was not disclosed. However, Berkadia, which arranged the sale and financing, said it had secured an $82 million bridge loan for Blue Magma from Arbor Realty Trust. The non-recourse, floating-rate three-year interest-only loan includes two one-year extensions.
Berkadia Senior Managing Director Charles Foschini and Managing Director Christopher Apone secured the financing on behalf of Blue Magma. Senior Director Patrick Jordan of Berkadia’s Memphis office represented CAPREIT. The firm acquired the property, then called Madison Cypress Lakes Apartments, for $47.8 million, or $47,704 per unit, in October 2017, from Equus Capital Partners.
Jordan said in a prepared statement the community offers multiple opportunities for value creation through interior and exterior renovations. He said Blue Magma has a signature style that will pair well with the Memphis market which he described as one that is resilient and experiencing tremendous growth. Blue Magma owns at least three multifamily properties in Memphis. The firm also has assets in Georgia, Florida, Texas and Mississippi.
Foschini, who noted the lender has worked with Blue Magma in the past, said in prepared remarks that Blue Magma has a proven track record in the market for repositioning workforce housing.
Located at 6860 Quince Road, Waterview Apartment Homes was built in 1985 and offers one- and two-bedroom units ranging in size from 533 to 1,160 square feet. The pet-friendly property includes 22 acres of lakes with water features, lighted tennis courts, a fitness center, indoor and outdoor pools and spas, a sundeck and lounge area. Apartment amenities include vaulted ceilings, ceiling fans, and in some units, washer/dryers, wood-burning fireplaces and built-in bookshelves.
The property is located in Southeast Memphis near Interstate-240 and Bethel University. It is about 25 minutes from downtown Memphis and is also a short drive from the Nonconnah Technology Corridor, the Poplar/I-240 Class A office corridor, the FedEx World Technology Center and Memphis International Airport. Waterview Apartments Homes is also close to shopping, dining, entertainment and tourism options including Elvis Presley’s Graceland home, Beale Street and the FedEx Forum, home of the NBA’s Memphis Grizzlies.