EBSCO Refinances 2 Southeast Properties
- May 24, 2017
EBSCO Income Properties has obtained a total of $61.6 million in Fannie Mae fixed-rate loans to refinance two of its apartment properties. One is in Tennessee, the other in North Carolina.
A $25.6 million Fannie Mae fixed-rate loan was provided to refi Lincoln at Wolfchase, a 408-unit apartment community in Cordova, Tenn., about 15 miles east of Memphis. The 12-year fixed-rate loan has three years of interest-only payments followed by amortization on a 30-year schedule. The loan was used to retire higher-interest debt and return equity to the borrower.
Built in 1998, Lincoln at Wolfchase features a pool, clubhouse, grilling area, and covered parking and garages. After acquiring the property in 2015, Birmingham, Ala.-based EBSCO embarked on a capital improvement plan focused on exterior renovations and enhancing the creditworthiness of its resident population. For the last year, occupancy rate at Lincoln at Wolfchase has averaged more than 95 percent.
Laurel Springs Apartments, a 504-unit apartment community in High Point, N.C., received a $36 million Fannie Mae fixed-rate loan. The 12-year fixed-rate loan has four years of interest-only payments followed by amortization on a 30-year schedule.
The loan was also used to retire higher-interest debt and return proceeds to the borrower. It was financed under Fannie Mae’s Green Building Certification program, which provides a lower all-in interest rate for properties with a Fannie Mae-recognized energy certification.
Developed between 2001 and 2005, Laurel Springs Apartments features a clubhouse with fitness center, two swimming pools, and garages for residents. After acquiring Laurel Springs as a bank-owned property in 2015, EBSCO stabilized the property. At closing, its occupancy exceeded 96 percent.
Capital One senior vice president Chad Thomas Hagwood, who leads the company’s multifamily finance’s Southeast region from its Birmingham office, originated the loans, and colleague Brandon Pate managed the transactions. These deals mark EBSCO Income Properties’ ninth and 10th with Capital One.