Audubon Enters Athens Growth Play with Options

Adaptability proves key in an Athens acquisition, and Capital One advances a refi loan to property with 99 percent occupancy.
Westpark Club

Westpark Club

Athens, Ga.—Flexibility is an often-overlooked aspect of multifamily investment. Yet the ability to adapt to market conditions was certainly a key factor in Audubon Communities’ $10.3 million acquisition of the Westpark Club in Athens, Ga. The deal includes 136 existing units in Phase I, as well as a 6.62-acre Phase II parcel that is available for development. Transwestern represented the seller, Martin Management.

“Athens’ thriving community supports the Phase II development, which presents Audubon with the opportunity to nearly double the community size while implementing a renovation program on the existing units to increase the asset’s value,” said Mike McGaughy, managing director at Transwestern. McGaughy worked alongside fellow managing director Jon Kleinberg on the sale.

The 1997-built Phase I features one- and two-bedroom units that average 1,111 square feet in size. Amenities include a pool, fitness center, internet café, two lighted tennis courts and a sand volleyball court.

Capital One advances refi loan to 99 percent occupied property

Bethesda, Md.–Capital One announced that it has provided a $7.5 million fixed-rate Fannie Mae loan to refinance Acacian Apartments, a 136-unit apartment community in Garden Grove, a city in Orange County, Calif. Kristen Croxton and Greg Reed, senior vice presidents in Capital One’s office in Newport Beach, Calif., originated the transaction. The borrower has owned the property since 1977.

Two existing loans on the property were scheduled to mature in late 2016, but the borrower chose to refinance them early, rather than risk interest rates rising from their historic lows. “The client elected to work with Capital One because of our existing relationship,” said Reed. “They knew that we would move quickly.”

Because of the client’s longstanding ownership of the property and the transaction’s low leverage, Capital One was able to offer a 15-year loan at a rate below 4 percent. “Capital One secured terms that reflect the care we’ve taken with this property over the years,” said Elka Reider, a principal in the transaction.  “It was very gratifying to see our commitment to the property and to sound management recognized.”

The Capital One team was also able to find a solution to complications that arose from an unexpected third-party expense.  “By working closely with the client, our team was able to resolve the situation successfully,” Croxton said.

Acacian Apartments’ occupancy rate has averaged 99 percent over the past three years, thanks to the high demand in its submarket and the care with which the property is maintained. Amenities include a clubhouse, swimming pool, and laundry room.  It is located adjacent to the Garden Grove Freeway and the Santa Ana Freeway, providing easy access to locations across Southern California. Angel Stadium and the Anaheim Convention Center are less than three miles away.

The 15-year fixed-rate loan has 10 years of yield maintenance and a 30-year amortization payable on an actual/360 basis.