Florida Apartment Complex Wins $19M Refi
- Jun 15, 2012
Gainesville, Fla.—It’s been notoriously hard to refinance CRE in recent years, even multifamily properties in some cases. Yet refi deal volume is picking up, especially in the case of multifamily properties, as investors and lenders come to understand the potential long-term returns of such properties in an environment in which household formation is increasing, but without the rush among households to buy properties.
Epoch Properties recently secured a seven-year, $19.3 million fixed-rate loan for Wildflower Apartments, a 201-unit apartment property in Gainesville, Fla. “It was a refinance of the construction loan,” HFF director Elliott Throne tells MHN.”No renovation, as is it a newer asset in great shape.”
Built in 2007, Wildflower Apartments is near the University of Florida campus and Shands Hospital. The property, which is 99 percent occupied, has five residential buildings with one-, two- and three-bedroom units. Amenities include structured parking, concierge service, fitness facility, billiards room with pub area, air-conditioned basketball/sport court and resort-style pool.
The transaction represented a chance for the lender to make an investment in a project with a strong sponsor who’s locking in financing at a time when rates are very low, Throne continues. HFF represented Epoch in the deal. The lender was Prudential Mortgage Capital Co.
Since 1970, Epoch has developed over 32,000 multi-housing units in over 55 cities. Prudential Mortgage Capital currently has $72 billion in assets under management, and maintains a loan-servicing portfolio of about $68.8 million.