California Buyer Acquires Third Louisville Apartment Complex
- Mar 02, 2012
Louisville, Ky.—Steadfast Income REIT Inc. has acquired Renaissance St. Andrews Apartments, a garden-style residential property in Louisville, Ky. Renaissance St. Andrews, which is situated on about 19 acres, is a 216-unit complex built in 2001. The property offers one- and two-bedroom units, and was 90 percent leased at closing.
Steadfast, a public, non-traded REIT based in Irvine, Calif., has taken a keen interest in Louisville multifamily properties recently. Renaissance St. Andrews is the third property the company has bought in the market in less than a year. It has also acquired both the 130-unit Arbor Pointe Apartments and the 123-unit Cooper Creek Village, both in greater Louisville.
Walker & Dunlop L.L.C., a subsidiary of Walker & Dunlop Inc., provided $7 million in interim financing for the acquisition. The company provided the loan to the borrower under its interim loan program.
The program offers floating-rate interim loans to experienced borrowers seeking to acquire or reposition multifamily properties that don’t currently qualify for permanent financing, according to Walker & Dunlop. Loans originated through the program are funded using a combination of company capital and credit facilities and are held on the company’s balance sheet. The non-recourse loan was structured with a one-year term.
“Walker & Dunlop continues to focus on developing proprietary, complementary product offerings and we believe there’s a continued market need for interim financing on multifamily properties,” a spokeswoman for the company tells MHN. “As multifamily acquisition activity continues, borrowers are looking to acquire and reposition properties that do not currently qualify for permanent financing. We’re focused on meeting this market demand by using our own capital to provide borrowers with financing options that meet their needs.”