Eight Bay Advisors has secured $145 million in refinancing and construction loans for three properties in Utah. Walker & Dunlop’s Jeff Kearns and Greg Richardson led the team that arranged the three HUD loans for the company’s communities in West Jordan, Orem and Salt Lake City.
In West Jordan, Eight Bay received $41.4 million in financing for its Boulder Canyon Apartments. Built in 2010, the 280-unit community offers one-, two- and three-bedroom floorplans that range in size from 725 to 1,352 square feet. The property’s amenities include a fitness center, pool, clubhouse, playground and outdoor patio. Located at 5517 Slate Canyon Drive, Boulder Canyon Apartments is roughly 30 minutes away from Salt Lake City. According to Yardi Matrix data, the community is 95.7 percent occupied.
Eight Bay also received a $43.8 million loan for its Canyon View Apartments that was built in 1998. Located at 1401 Sandhill Road, the community is 45 minutes south of Salt Lake City. The 288 units are offered as one-, two- and three-bedroom floorplans that are between 782 and 1,174 square feet. Canyon View’s amenities include a pool, fitness center, clubhouse and business center. The community is 98.6 percent occupied, according to Yardi Matrix data.
Walker & Dunlop looked to HUD’s 223(f) refinance program to pay off the existing debt on Boulder Canyon Apartments and Canyon View Apartments. The two HUD loans allowed Eight Bay to conduct immediate and short-term repairs on both properties, while also providing a reserve fund for future repairs.
BUILDING UP ITS UTAH PORTFOLIO
For Eight Bay’s Salt Lake City property, Walker & Dunlop structured the financing through HUD’s 221(d)(4) new construction program. The $60.3 million loan includes both construction and permanent financing for Eight Bay’s Sugar Alley Apartments project that’s expected to deliver in October 2022. The loan also came with a favorable interest rate due to the community’s Energy Star qualification, according to Walker & Dunlop.
Eight Bay is working alongside MVE + Partners and Lowe Property Group to build the mixed-use property that will offer 193 units and 17,230 square feet of ground floor retail. The units will be in studio, one- and two-bedroom floorplans with penthouse options.
Ron Cole, principal of Eight Bay Advisors, said in prepared remarks that the company entered the Salt Lake City market in 2010 with the acquisition of Boulder Canyon Apartments. Since then, Eight Bay’s portfolio has increased to more than 1,000 units in place or under construction in Utah and western U.S.