By Dees Stribling, Contributing Editor
Philadelphia—A seven-building apartment property portfolio, owned by Reinhold Residential and comprised of properties in Pennsylvania, has obtained refinancing to the tune of $70.2 million. All of the properties have the distinction of being historic structures that have been converted to multifamily rental space.
The portfolio contains over 628 units, with properties in Pittsburgh and West Chester, Pa., though most are in Philadelphia. Walker & Dunlop oversaw the provision of the refinancing loans, which have 10-year terms with five years interest only, followed by 25- or 30-year amortization periods.
The portfolio was closed as a bulk delivery using Fannie Mae’s MATS ERL execution. That product allows for an Early Rate Lock (ERL) option for use with Multiple Asset Transactions (MATS)—hence the name—that enables borrowers to lock in interest rates and financing terms. According to Walker & Dunlop, MATS ERL allows the borrower in this case to use funds from closing to facilitate capital upgrades for the properties over the next five years.
The portfolio includes the Chocolate Works Apartments, Shadyside Commons Apartments, Sharples Works Apartments, the Touraine Apartments, Trinity Row Apartments, Waterfront I Apartments, and Waterfront II Apartments. The combined average occupancy of the properties is over 99 percent.
All of the structures are on the National Registry of Historic Buildings. With the exception of Trinity Row Apartments (row houses) and the Touraine Apartments (once a residential hotel), the properties were once commercial or industrial buildings that were converted into apartments nearly 20 years ago.