CAPREIT Finances Acquisition of Virginia Multifamily Properties
- Dec 26, 2012
Newport News, Va.—CAPREIT Inc. has obtained separate loans for the acquisition of two apartment properties in Newport News. The loans, which total about $19.8 million, were originated by Walker & Dunlop Inc. through Freddie Mac’s Capital Markets Execution Program.
The properties are Arboretum Place and Silver Hill at the Arboretum, which are next to each other. Both properties are affordable, as defined by Section 42 of the Low Income Housing Tax Credit (LIHTC) program.
Arboretum Place contains 76 units (41 percent of its total) and Silver Hill at the Arboretum contains 123 units (80 percent of its total) operating under the LIHTC program. The program stipulates that the affordable units at both properties must be rented to households earning 60 percent or less of area median income.
Both acquisition loans were structured with 10-year terms with three-years interest only, followed by 30-year amortization periods. The financing for Arboretum Place was underwritten to a 79 percent loan-to-value, while the financing for Silver Hill at the Arboretum was underwritten to a 77 percent loan-to-value.
Arboretum Place offers a clubhouse, fitness center, lighted tennis court, car wash facility, playground and parking garages. Silver Hill at the Arboretum is an age-restricted property (55 or older) that features a social lounge, fitness center, library and video library, central laundry facilities on each floor and van transportation service to local retail and medical facilities.
CAPREIT is a multifamily specialist with holdings nationwide. In particular, the company often acquires multifamily properties constructed and financed through the issuance of tax-exempt multifamily housing revenue bonds. Walker & Dunlop, an affordable housing financial specialists, has provided over $81 million for affordable housing properties nationwide in the first three quarters of 2012.