Grandbridge Closes $567M Portfolio Refinancing
- Oct 24, 2019
Olen Properties Corp. has refinanced an 11-property portfolio of Class A multifamily properties in three states with a $567 million recapitalization arranged by Grandbridge Real Estate Capital using GSE green financing programs. The garden-style properties are located in Florida, Georgia and Nevada and total nearly 3,300 market rate one-, two- and three-bedroom rental units.
Don Curtis, the lead on Grandbridge’s Newport Beach, Calif., team, originated the transaction on behalf of Olen Properties, along with Hunter Curtis and Taylor Curtis.
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The loan package is comprised of individual long-term fixed-rate first mortgages and features interest-only periods followed by 30-year amortization and low-3 percent interest rates. The loans exceeded 70 percent of the portfolio’s capitalized value and provided a historical cash-out refinance to the borrower.
Don Curtis noted in a prepared statement that Olen Properties, also based in Newport Beach, wanted to utilize green financing for the transaction. He said the properties’ vintage—nine of the 11 properties were built between 1996 and 1999—made them good candidates for the GSE green financing programs. Curtis stated Grandbridge has done many deals like this refinancing for Olen Properties over the past several years. The properties are estimated to achieve a 30 percent reduction in water and energy consumption through green improvements.
Seven of the properties are located in the Las Vegas MSA, including Hidden Cove, a 212-unit community that was built in 1988. Three are in South Florida and one, The Pointe at Suwanee Station, a 336-unit community built in 2006, is located in Suwanee, Ga. Olen bought The Pointe at Suwanee Station in May from Waterton for $66.5 million, according to Yardi Matrix data.
The other Las Vegas-area properties are: Canyon Villas, 256 units; Durango Canyon, 544 units; Falling Water, 288 units; Red Rock Villas, 192 units; and Arroyo Grande, a 232-unit community, and Horizon Ridge, a 200-unit community, both located in Henderson, Nev. The Florida properties are: Club Lake Pointe, 240 units in Coral Springs, Fla.; Sanctuary Cove, 420 units in North Palm Beach, Fla.; and Weston Place, 372 units in Weston, Fla.
Several of the properties were identified by Yardi Matrix data as recently becoming subject to 10-year loans at 3.43 percent annum funded by Fannie Mae that will expire in September 2029. They are: Durango Canyon, $81.5 million loan; Hidden Cove, $23.6 million; Horizon Ridge, $30.6 million; Arroyo Grande, $34.8 million; Falling Water, $47.3 million; Club Lake Pointe, $48.9 million; Red Rock Villas, $41 million; and Canyon Villas, $47.6 million.
Yardi Matrix did not have updated loan information on two of the properties, Weston Place and Sanctuary Cove, but noted that both had been subject to 10-year CMBS loans from Fannie Mae at 5.03 percent set to expire June 1, 2021. Sanctuary Cove was subject to a $37.7 million loan and Weston Place was subject to a $43.03 million loan. There was no loan information from Yardi Matrix on The Pointe at Suwanee Station.
Grandbridge Real Estate Capital, a subsidiary of Branch Banking and Trust Co. (BB&T) arranges permanent commercial and multifamily real estate loans, services loan portfolios and provides asset and portfolio management. Grandbridge has a current servicing portfolio of $29.6 billion and provides asset and portfolio management nationwide for capital providers including Freddie Mac, Fannie Mae, Ginnie Mae, insurance companies, banks and more than 250 securitizations.