TODAY’S DEALS: $55M Freddie Mac Financing for Suburban Maryland Apartments, and Other Transactions
- Sep 15, 2008
By Anuradha Kher, Online News Editor, MHN and Barbra Murray, Contributing Editor, CPNCrofton, Md.–Financing to the tune of $55 million has been put in place for the Keswick Park Apartments, a 406-unit multifamily asset in Crofton, Md., about 25 miles northeast of Washington, D.C. and 25 miles south of Baltimore. Johnson Capital arranged the capital for Boston-based borrower Berkshire Property Advisors L.L.C. The backing came in the form of a seven-year fixed-to-float loan with a 6.11 percent interest rate, through Freddie Mac’s Acquisition-Rehab program. The interest-only financing will be amortized over 30 years following the first four years of the term. “We represent a variety of lenders and Freddie Mac ended up being the most competitive from an equity return perspective for the purchaser,” Martin Fayer, senior vice president with Johnson Capital, tells CPN. Located at 1623 Parkridge Circle and located adjacent to the Crofton Country Club, Keswick Park encompasses 10 three- and four-story structures developed in 1991. Berkshire, which snapped up the apartment community from a joint venture consisting of Greenbelt, Md.’s The Bozzuto Group and New York City-based JP Morgan, is not disclosing the exact cost of the acquisition, but the company will utilize the remaining proceeds of the loan to renovate Keswick Park. “The purchaser was interested in the property because it presented an opportunity to upgrade units and generate good returns, while simultaneously providing reasonably priced housing in a relatively high-demand market,” Fayer adds. Commercial Mortgage Capital Closes $9,950,000 in Two Multi-Housing LoansEast Lansing, Flint, Mich.–Commercial Mortgage Capital Inc. has closed a $7,250,000 loan on a 215-unit student housing property in East Lansing, Mich. and a $2,700,000 loan on a 130-unit multifamily property in Flint, Mich.The student housing property received a 10-year non-recourse loan, which carries a fixed rate of 6.49 percent. The multifamily property carries a four-year partial recourse loan with a fixed rate of 5.07 percent.39-Unit Rental Community Sold for Over $2MEnglewood, Colo.–Hendricks & Partners recently arranged the sale of Lorinda, a 39-unit apartment community located at 3300 South Washington St. in Englewood, Colo., for $2,050,000. Lorinda LLC of Greenwood Village, Colo. sold the property to 1031x.com.