CBRE Arranges $57M Financing for 837-Unit Portfolio
- Feb 08, 2018
CBRE Capital Markets’ Debt & Structured Finance team has facilitated a $56.9 million loan for the acquisition of three communities in the Southeast and Midwest regions. Executive Vice President Bill Chiles, Senior Vice President Scott Peterson and Senior Production Analyst Brian Cruz—all of CBRE’s San Diego office—arranged the floating-rate loan on behalf of the buyer, Strata Equity Group. Freddie Mac funded the loans through an expansion of an existing credit facility structured by CBRE. Covenant Capital Group was the previous owner.
The properties included in the transaction are Veridian in Spartanburg, S.C.; The Racquet Club in Lexington, Ky.; and Icon on the Greenway in Gastonia, N.C. All communities are near schools, employment hubs and major retail and transportation corridors. The assets present value-add opportunities, despite having undergone renovations in the past two years.
According to Yardi Matrix data, the properties had occupancy rates exceeding 90 percent at the time of the deal. Veridian is a 183-unit community located at 315 Birchrun Drive. The 13-building property features a mix of studios, one-, two- and three-bedroom units. Built in 1989, The Racquet Club includes 474 units and is the oldest property of the three. The asset is located at 3900 Crosby Drive and comprises 25 three-story buildings. Icon on the Greenway features 180 apartments across eight buildings.
In-unit amenities vary among the properties and include granite countertops, stainless steel appliances, fireplaces, plank or hardwood-style flooring, walk-in closets, vaulted ceilings and washers/dryers. All the communities have swimming pools and fitness centers.
At the beginning of this month, CBRE also arranged $42.2 million in financing for the acquisition of The Reserve at Park Place, a 312-unit community near Raleigh, N.C.
Images courtesy of Yardi Matrix
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