Aragon Closes 850 Unit Purchase in Denver and Orlando

Aragon Holdings buys two communities in Denver and Orlando; Walker & Dunlop structures $72 million in bridge conduit and mezzanine financing for acquisitions; and Crown Realty completes its 10th Phoenix area apartment acquisition since 2010.

Denver & Orlando—Aragon Holdings has expanded its national multifamily portfolio with the acquisition of two properties located in Orlando and Denver. The assets, which had a total cost of over $100 million, were purchased through the firm’s private equity fund, Aragon Multi-Family cash Flow Fund III. Freddie Mac provided financing.

“Our existing properties in both the Denver and Orlando markets have performed extremely well for Aragon, and we are pleased to expand our portfolio in cities that have solid track records for outperforming the national economy in terms of both job and population growth,” says Dan Guy, president of Aragon Holdings.

The two properties total 850 units, and bring Aragon’s apartment portfolio to nearly 10,000 units. Since 2012, the company has purchased more than $500 million worth of multifamily assets located in seven states.

Located in Denver, Waterfield Court Luxury Apartments totals 482 units. The 1996-built asset is the fourth property that Aragon has acquired in the Denver metro area. Amenities include two swimming pools (with poolside Wi-Fi), an indoor spa, a clubhouse, a basketball court and a bark park.

Signal Point Apartment Homes represents Aragon’s entrée into the Orlando market. The asset, which underwent a $15.5 million renovation in 2009, features 368 units. Amenities include three swimming pools, two tennis courts, a fitness center, a business center, a resident center, golf simulator and dog park.

Walker & Dunlop structures $72M in bridge conduit and mezzanine financing for acquisitions

Bethesda, Md.—Walker & Dunlop Inc. announced that it structured $72.2 million in bridge, conduit and mezzanine financing for the acquisition of six properties located in Louisiana and Texas.

New Orleans-based Managing Director Stephen Farnsworth, Tim Koltermann, CEO of Walker & Dunlop’s CMBS platform, and Proprietary Capital Chief Production Officer Sandor Biderman, led the teams that structured the financing for Key Real Estate Co., a repeat Walker & Dunlop borrower that currently manages and owns over $300 million in multifamily assets and has a portfolio that includes more than 2,200 apartments and more than 25,000 square feet of commercial space.

The team structured $35.4 million in adjustable-rate bridge financing across three loans at 87 percent loan-to-cost with a 24-month term and a 12-month extension option. The loans are cross-collateralized and cross-defaulted and secured by three multifamily properties located in Texas and Louisiana.

The $31.42 million fixed rate conduit loan was structured at 71 percent loan-to-value with four years interest-only and a 30-year amortization. Behind the conduit loan, Walker & Dunlop arranged and co-invested in a $5.38 million mezzanine loan matching the term and structure of the conduit loan.

Jeff Goodman, executive vice president of the proprietary capital group, comments, “This financing demonstrates the breadth of Walker & Dunlop’s capabilities, which enabled us to customize three distinct financing structures into a seamless execution to meet our client’s needs. Having this broad menu of products, and teams of originators, underwriters, attorneys and closers working together to get to the finish line, gives Walker & Dunlop a distinct advantage in the marketplace.”

Tim Koltermann comments, “The team we have assembled for our expanded commercial lending operation is fantastic, as demonstrated by our performance for Key on this pool. We are very excited about the future of this business and winning and funding a sophisticated financing like this is a great statement for Walker & Dunlop as we continue to expand our commercial lending business.”

Crown Realty buys 272 units in Arizona

Chandler, Ariz.—Crown Realty & Development is the new owner of Ocotillo Springs, a 272-unit community in Chandler, Ariz. The first picked up the 272-unit community for $33.4 million. Crown has a substantial renovation plan in the works that will upgrade amenity spaces and apartment interiors. This is the company’s tenth acquisition in the Phoenix metro area since 2010.

“During the real estate downturn we had the opportunity to purchase properties with depressed pricing values,” says Rick Carpinelli, senior vice president of acquisitions & development for Crown. “In today’s market, we look for communities with great locations and solid structure and then create value through modifications or upgrades to the property, which allow us to increase revenues and therefore returns.”

Plans call for upgrades to the clubhouse, swimming pool and will include a new state-of-the-art health and fitness center. The unit interiors will also undergo extensive renovation providing updated amenities and finishes, which will match the quality of new communities coming online.  Crown has hired Greystar to professionally manage the operations and renovations of the property.