Buckingham Gets $330M Loan for Properties in Midwest, Southeast
The owner has invested more than $40 million in capital improvements across the portfolio.
Buckingham Cos., an Indianapolis-based full-service, vertically integrated real estate company, has refinanced a, five-state, seven-property multifamily portfolio with nearly 2,400-units through a $330 million floating-rate SASB loan from Goldman Sachs/Atlas SP Partners.
The CBRE Capital Markets Debt & Structured Finance team of Shawn Rosenthal, Jason Gaccione, Tom Traynor, Tom Rugg, Jake Salkovitz, Henry Fenmore, Lauren Weinstein and Justin Helbling arranged the single-borrower securitized loan.
CBRE said the SASB loan allows Buckingham to realize some of the value in the portfolio created by renovations since it has owned the properties.
“CBRE’s marketing process focused on lenders who can provide Buckingham with the best combination of leverage, pricing and maximum flexibility on prepayment and asset releases,” Gaccione, a CBRE executive vice president, told Multi-Housing News. “The SASB loan accomplished that and combined competitive pricing with flexible prepayment structure that included open prepayment across a significant portion of the portfolio.”
Value-add portfolio
The newly-refinanced properties are located in Indiana, Ohio, Kentucky, Tennessee and Georgia. Buckingham began acquiring the assets, which were built between 1982 and 2021, seven years ago. The company has invested nearly $45 million in capital improvements at the communities, including renovations on almost 1,500 units.
The properties include Whetstone Flats I & II, a-548 unit community located at 1430 Bell Road in Nashville, Tenn., Champion Farms Apartments, which spans 264 units at 3700 Springhurst, Blvd. in Louisville, Ky., the 360-unit Woodbridge Apartments, located at 1000 Glenridge Drive, also in Louisville., Fieldstone at Glenwood Crossing a 354 unit property situated at 10637 Springfield Pike in Cincinnati., the 494-unit Rosemont Vinings Ridge, at 3200 Post Woods Drive in Atlanta and The Village on Spring Mill, which has at 1467 Handel Drive in Carmel, Ind.
READ ALSO: 5 Reasons Multifamily Is an Anchor in Turbulent Times
Buckingham had received a $31.7 million construction loan from the U.S. Bank for the development of the 296-unit second phase of Whetstone Flats, a luxury multifamily property in Nashville, in May 2019. The first phase, which had 252 units, had been completed in early 2017, according to Yardi research data. Located in the metro’s Antioch South submarket, the second phase added 10 more buildings to the property for a total of 18 buildings in the community. Whetstone Flats has a mix of one-, two- and three-bedroom units and amenities such as two outdoor kitchens, a pet park and catering kitchen.
A BTR joint venture
In March, a joint venture between Buckingham and Onyx+East broke ground on its first build-to-rent community in Brownsburg, Ind., as part of Buckingham’s Mural Collection. Known as Mural Brownsburg, the community comprises 165 single-family homes, and itset to have a soft opening in October. The three- and four-bedroom residences will range from 1,572 to 2,086 square feet and include private outdoor spaces, walking paths, a clubhouse and swimming pool.
The fast-growing Indianapolis suburb is 3.5 miles from Lebanon, Ind., where Eli Lilly has announced it is building two new manufacturing sites with 700 jobs within the LEAP Innovation Park.
