Orion Secures $182M Refi for Texas Portfolio

JLL arranged the loans for four properties in the Dallas area through Freddie Mac.
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Orion Residential Advisors has secured another round of loans for its four-property portfolio in the Dallas area. 

JLL’s Mona Carlton and Kristopher Lowe from the Capital Markets team represented Orion and secured the four 10-year, fixed-rate loans totaling $181.54 million through Freddie Mac. The loans are structured to provide five years of interest-only payments at a competitive rate and had refinanced four previous variable-rate Freddie Mac acquisition loans that the JLL team originally secured for Orion in 2016. Carlton also previously arranged $37.6 million in financing for the acquisition of two residential communities in Apopka, Fla., and Bedford, Texas. 

The four-property portfolio was purchased by Orion in May 2016 and the units average 883 square feet across the portfolio. The Texas portfolio includes the 453-unit Orion McKinney in McKinney that was built in 2008, the 416-unit Orion McCord Park in Little Elm that was completed in 2012, and the 312-unit Orion Prosper that was built in 2008 and the 308-unit Orion Prosper Lakes that was constructed in 2010 that are both located in Prosper. The portfolio’s buildings’ amenities include pools, fitness centers, outdoor entertaining areas, club rooms and nearby access to parks and jogging trails.

Dan Gumbiner, president & CEO of Orion, said in prepared remarks that Orion was determined to complete the transaction despite the difficulties of the current market environment caused by the coronavirus pandemic. 

A CRUCIAL REFINANCING

Gumbiner also said in prepared remarks that the refinancing was critical to the company’s long-term strategy for the portfolio. The four communities are part of Orion’s Core Plus strategy that features stabilized apartment communities in similar markets to its Value Add portfolio, but with more of a focus on long-term investment and moderate leverage.

Orion also has a 290-unit community in Midland, Texas, that is part of its Core Plus strategy. Overall, the Orion portfolio is valued at more than $2.5 billion with 83 properties and more than 22,000 units spread throughout nine states.