Fath Properties Obtains $125M Refi for 10-Property Portfolio in Ohio and Texas
- Dec 12, 2016
Cincinnati—Fath Properties has obtained $125 million in refinancing for an apartment property portfolio that consists of over 3,300 units in 10 properties in two states. Fath specializes in owning and managing apartments, with a total of over 8,000 units located in Ohio, northern Kentucky, Indiana and Dallas.
Six of the refinanced properties are in the greater Cincinnati/Dayton marketplace and contain 2,065 units. The remaining four properties are located in Texas and consist of 1,273 units.
Bellwether Enterprise Real Estate Capital LLC, the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment Inc., facilitated the refinance. The company created a full-term, interest-only loan utilizing an index lock, meaning that the borrower got a rate 75 base points lower than current rates.
“Ultimately, we were able to leverage Freddie Mac’s product offerings and deliver an extremely low interest rate,” noted Sara Behrman, the loan’s originator and senior vice president of Bellwether Enterprise’s Cincinnati office. “Many of the units in the portfolio fit into Freddie’s VLI (very low income) category when assessing the income levels of the residents.”
Interest in refinancing apartment properties has been steady in recent months (presumably ahead of interest rate increases), even though the share of overall multifamily finance done by the GSEs has slipped recently. Fannie Mae and Freddie Mac accounted for only 44 percent of apartment financing deals during the first half of 2016, according to Real Capital Analytics. That’s only time in the past five years in which GSEs haven’t been the majority lenders in the apartment market.