Grandbridge Provides Financing for Two Developments
- Apr 14, 2016
Fayetteville, Ark. and Columbus, Ga.—Grandbridge Real Estate Capital has closed on a $12.2 million acquisition loan secured by a first mortgage on Garden Park Apartments, a 246-unit multifamily property in Fayetteville, Ark., near the University of Arkansas.
“The property is located adjacent to campus but offers a more independent lifestyle for students that may want to live there, even though it’s not a ‘dedicated’ student property,” Alan Tapie, Grandbridge Real Estate Capital’s senior vice president, told MHN. “It has all the amenities tenants look for including being on the campus bus line.”
Other amenities include a large pool and sun deck, tennis courts, a fitness center, property wide Wi-Fi and a community and business center.
Funding for the property was provided through Freddie Mac’s Capital Markets Execution Multifamily loan product. The financing was structured as a long-term fixed-rate loan with some initial interest only so the buyer could bring in their business plan and implement it before the loan began amortizing.
“It was a repeat client that knows the submarket and has proven operating ability, as well as the relationship between Freddie Mac and Grandbridge helped structure long-term financing that matched the business plan for the client,” Tapie said. “The borrower’s philosophy includes owning properties that have shown to have stable cash flow over the years in smaller to mid-size markets and fit in the ‘B’ space, meaning not buying brand new ultra low cap rate assets or older vintage assets that may have functional obsolescence.”
In a separate deal, Grandbridge also originated a $7.31 million acquisition loan secured by a first mortgage on The Lodge Apartments, a 237-unit garden style multifamily community in Columbus, Ga.
“The property is well located near employment drivers in Columbus and is a very clean asset with an open site plan,” Tapie said. “Additionally, the property has large floor plans that aren’t offered by newly constructed properties today.”
The Lodge Apartments offers residents a business center, tennis court, volleyball court and controlled swimming pool.
“The client was a repeat customer of Grandbridge and Freddie Mac,” Tapie said. “Additionally, Grandbridge had a comfort factor with the location and asset.”