JV Gets $35M Refi for 604-Unit Portfolio

Auerbach Funds and Blue Magma Residential secured the loan with Greystone for a three-property multifamily portfolio located in the Southeast.
The Park at Arlington. Image courtesy of Auerbach Funds

A joint venture between Auerbach Opportunity Fund I LP and Blue Magma Residential has secured a $35.4 million loan to refinance an existing acquisition loan with Ladder Capital for a three-property, 604-unit multifamily portfolio in the Southeast.

The 10-year fixed rate loan was secured with Greystone through the Fannie Mae Delegated Underwriting and Servicing (DUS) program and represents 75 percent loan-to-value for the portfolio. An Eyzenberg & Co. team of Jeff Conti and Mila Babenko arranged the financing on behalf of the borrower.

The portfolio, originally acquired by the joint venture in December of 2017, consists of three two-story residential communities: the 188-unit Park at Arlington in Covington, Ga., the 232-unit Park at Brighton in Robinsonville, Mich., and the 184-unit Park at Ashburn in Dothan, Ala.

“In a continuation of our strong relationships with Greystone and Eyzenberg, we are glad to have found a loan product that fits well with our business plan for the portfolio, and we look forward to continuing to realize the full potential of these properties,” said Reuven Oded, CEO of Blue Magma, in prepared remarks.

As a joint venture, Auerbach and Blue Magma own more than 1,600 apartment units in four states. Other recent transactions include a $26 million loan to acquire a Houston apartment community earlier this year, and a $30.5 million loan to refinance a 224-unit community in Baton Rouge, La., in December 2018.