Capstone Capital Lands $10M Loan For Greenville Apartments
- Feb 10, 2016
Greenville, N.C.—Private equity firm Capstone Capital has completed a $10.1 million cash-out refinancing for the second phase of The Heritage at Arlington Apartments. The borrower had full recourse, bank debt on the asset of $7.6 million and wanted to transition to non-recourse debt to lock in an interest rate as early as possible. The borrower ultimately chose Fannie Mae debt, which provided the $10.1 million loan, and the borrower got $3 million in “cash-out” in return at the close of the transaction. The borrower also qualified for a two-year, interest-only period followed by a 30 year amortization for the remaining 11-year term on the loan.
Jackson Howard, president of Capstone Capital, represented the borrower through the financing transaction and said that the borrower is a repeat borrower with the company.
The 96-unit Class A apartment community has a mix of one-, two- and three-bedroom floor plans with rent prices starting at $850 for a 776-square-foot one bedroom, $1,010 for a 1,093-square-foot two bedroom and $1,240 for a three bedroom. Building amenities include a cyber cafe, business center, fitness center, game room with billiards, pool with cabanas and outdoor bar and a theater room. The owner of the property owns and manages about 2,000 units of multifamily, according to Capstone’s release.