Berkadia Negotiates Sale and Financing of Utah Multifamily Property
- Oct 27, 2015
Salt Lake City—Berkadia announced the recent sale and financing of a multifamily property in Taylorsville, Utah. James Wadsworth and Greg Barratt of the Salt Lake City office completed the sale of Settler’s Point on September 24, 2015. Managing Director Allan Freedman of the West Los Angeles office negotiated the interim acquisition loan through Berkadia’s Freddie Mac Program.
The seller, Equus Capital Partners, decided to sell to capitalize on the price appreciation happening for this age and quality of multifamily asset in the market. The buyer, TruAmerica Multifamily, was interested in capitalizing on Salt Lake City’s growing economy and has plans to upgrade the property’s units.
The seven-year loan highlights a 2.45 percent floating interest rate and three years of interest-only payments followed by a 30-year amortization schedule.
“The Salt Lake City economy is currently on the upswing, and the entire metro area is becoming more and more enticing from an investment standpoint. We received 24 written offers, which is an indication of the strong buyer demand,” Wadsworth said.
Madison at Settler’s Point is a 416-unit property built in 1984. Unit amenities feature fully equipped kitchens, balconies or patios, cable and Internet access, walk-in closets, fireplaces, ceiling fans, and washer and dryer hookups. Select units are furnished. Community amenities include two heated swimming pools, two clubhouses, a hot tub, playground, fitness center with a weight roomk and two tennis courts. The property is currently 99 percent occupied.
The property, situated near I-15 at I-215, is one mile from Salt Lake City Community College and 2 1/2 miles from Valley Fair Mall. Top employers in the area include Discover Financial Services, American Express, Saint Mark’s Hospital, Zions Bank and Utah Transit Authority.
“We were able to work closely with the buyer to negotiate excellent loan terms,” Freedman said. “The low initial interest rate and flexible prepayment were both attractive. Moreover, between the application process and eventual closing, we worked to get the client an additional five percent in proceeds.”
Apartment vacancy in the Salt Lake City metro area stood at 4.6 percent in the third quarter, while rents averaged $974 per month, up 3.4 percent year over year.