American Communities Acquires Three Assets in North Texas
- Aug 28, 2013
Plano & Irving, Texas—American Communities has acquired three communities in North Texas. The properties include Cornerstone Ranch and Laurel Ridge in Plano, as well as Islands West in Irving. With the most recent string of acquisitions American Communities has purchased seven assets in the past 18 months.
“To finalize a deal on two multifamily properties in 28 days and negotiate a third property concurrently is rare in our industry,” says Ronny Guerro, CEO and president of American Communities. “This is especially true since interest rates are on the rise. However, our growth is not built on real estate alone; it stems from our proven approach to brand communities and our hands-on management.”
There is already a plan for renovations and upgrades in place. The three assets will be rebranded under the Bel Air moniker following renovations.
“Within hours of closing on the properties, our maintenance team was on site to complete needed repairs,” says Lisa Holcomb, COO at American Communities. “One of the properties closed their pool during the summer, and within two days we had it back up and running for tenants. When American Communities buys a property, we want everyone to know they’ll enjoy immediate improvements and responsiveness. We’re building a brand based on the kind of customer service that has become a rarity from property managers.”
Pembrook Capital closes $20M for Brooklyn refinancing
New York—Pembrook Capital Management has closed a $20 million bridge loan for the refinancing of the Claredon Gardens apartment community in Brooklyn, N.Y. The property is a 224-unit, seven-building, garden-style community that is currently over 98 percent occupied. The financing Pembrook provided, along with $2 million in preferred equity from a separate partner, allowed the borrower to refinance the existing debt as well as complete any outstanding repair work, renovate the building units and increase rents as allowed.
“Pembrook looks to finance deals with qualified borrowers committed to delivering and maintaining high-quality projects,” says Stuart Boesky, Pembrook’s president & CEO. “With this additional financing in place, the owners will be able to carry out the long-term vision for Claredon Gardens and maximize the property’s overall value.”
Walker & Dunlop completes $394.58M in financings in Texas
Bethesda, Md.—Walker & Dunlop Inc. announced that year-to-date the company has provided $394.58 million in financing for properties located throughout the state of Texas.
Vice President Alex Inman led the team that structured a complex $26.4million 12-year loan under Fannie Mae’s DUS Moderate Rehab Program for a long-time Walker & Dunlop borrower for a garden-style apartment community located in the Dallas Ft. Worth Metroplex. Inman’s expertise in the Texas market facilitated the unique loan structure and provided the borrower with program advantages, such as permitting the loan to value on an “as renovated” value, and allowing the borrower to mortgage a portion of the renovations, eliminating the need for a bridge loan upon acquisition.
Because Elm Creek Apartments, located in Lubbock, had just completed construction at application, the borrower could not provide three months of stabilized collections for an immediate loan funding. Senior Vice President, Jay Thomas and his team’s knowledge of Fannie Mae products facilitated the refinance of the borrower’s construction loan early during the lease-up period, which allowed the borrower to lock in their interest rate early in the process and enabled Walker & Dunlop to execute immediately once rents reached stabilization. In a rising interest rate environment, this deal structure allowed the borrower to lock in a lower interest rate than they would have otherwise been able to obtain.
Woodside Manor, located in Conroe, Texas, is a 220‐unit Class A apartment community with 82 percent of units LIHTC rent restricted at 60 percent of Area Median Income (AMI). Additionally, 100 percent of units are age-restricted to residents 55+.Vice President Dustin Swartz led the team that structured the transaction.
Vice President Carolyn McMullen led the team that structured the HUD Section 223(f) financing for Woodway Village Apartments, in Austin, Texas. The property has qualified 100 percent of the units for low-income housing credits and is required by the Extended Use Regulatory Agreement to restrict 100 percent of the units to 60 percent of AMI until 2020. Due to recent construction and proper upkeep, Woodway Village has the feel and amenities typical of a market rate property.
In 2012, Walker & Dunlop closed $731.02 million for properties located in Texas.