Greystone Arranges $92M for PA Acquisition
- Nov 30, 2018
Greystone has provided a $91.6 million Freddie Mac loan for the $115 million acquisition of Lincoln Green, a multifamily community in Philadelphia’s Bala Cynwyd submarket.
Located at 4000 Presidential Blvd., the 636-unit property offers one- and two-bedroom floorplans ranging from 630 to 960 square feet. The asset comprises 30, three-story buildings. Built over two phased from 1986 to 1988, the community was 97 percent occupied as of October, according to Yardi Matrix. Interior features include washer/dryers, fireplaces, vaulted ceilings and private balcony/patios. Residents have access to amenities such as a fitness center, a concierge, a clubhouse, two swimming pools, outside storage, 24-hour security and 1,290 parking spaces.
Dan Sacks of Greystone’s New York office underwrote the senior loan to a high debt service coverage ratio. The financing was a 10-year, fixed-rate loan with six years of interest-only payments over a 30-year amortization period, with leverage at 80.3 percent of the purchase price. The firm was able to optimize the buyers value-add plan to complete the interior renovations that were underway by the previous owner, Deutsche Bank AG.
“Philadelphia is a prime market for commercial real estate investment, especially in the case of value-add opportunities such as Lincoln Green. With the early rate lock done at a favorable level in today’s rising rate environment, the borrower can benefit even further over time as improvements are made to the property and the value increases,” Sacks told Multi-Housing News.
Image courtesy of Greystone