Becker + Becker Lands $37.2M for Connecticut Office-to-Apartments Rehab
- Apr 03, 2014
Hartford, Conn.—Walker & Dunlop has provided a $37.2 million FHA Section 221(d)(4) financing to Becker + Becker to convert Hartford’s 777 Main Street into Class A apartments. The vacant 26-story office tower sits in Hartford’s central business district, and its rehabilitation plan is the centerpiece of state and local efforts to promote urban living and revitalize the downtown area.
777 Main Street was built in 1967 as the headquarters of Hartford National Bank. The asset was designed by architect Welton Becker, who designed the iconic Capital Records tower in Hollywood. As the building is included on the National Register of Historic Places, redeveloper Becker + Becker was able to land federal and state historic tax credits for help finance the program. Additionally, the state’s Capital Region Development Authority and Department of Housing invested more than $21 million behind Walker & Dunlop’s new mortgage loan to support the redevelopment. Twenty percent of the units will be set aside as affordable for very low income residents.
“It was a pleasure to work closely with our partners at HUD and many others to help deliver such an important project for the city of Hartford,” says Todd Trehubenko, Walker & Dunlop senior vice president, who led the team that structured the financing. “This transaction, while very complex, shows the unique role that FHA financing can play in the market to stimulate apartment construction and neighborhood development.”
Madison Realty Capital buys three-loan portfolio secured by Brooklyn properties
Brooklyn, N.Y.—Madison Realty Capital has purchased a portfolio of three defaulted loans from a local New York lender. The aggregate principal balance of the purchased loans, secured by three different multifamily and mixed-use properties, was approximately $17 million.
“We continue to see lenders pruning their portfolios to clean up their balance sheets and maximize their capital,” says Josh Zegen, co-founder and managing member of MRC. “MRC is always on the lookout for the resulting distressed loan opportunities. With our vertically integrated platform, MRC is well-equipped to pursue various exit strategies to maximize value. MRC has been active in Brooklyn for many years and we’re able to understand asset values and risk in these neighborhoods.”
The properties securing the loans are a partially complete mixed-use residential development in Midwood, a 23-unit residential rental property in Red Hook and a seven-story condominium building in Vinegar Hill.
NorthMarq finalizes $24.95M interest-only refinance
Los Angeles—Michael T. Elmore, executive vice president/managing director of NorthMarq Capital’s Los Angeles based regional office, arranged the $24.95 million refinance of Highland Pinetree Apartments, a 320-unit multifamily property located at 1501 South Highland Avenue, Fullerton, Calif.
This was the third financing of the asset completed by NorthMarq and was set at a 10-year interest only loan at 4.19 percent, with substantial cash out for property renovation and investment in other assets. NorthMarq arranged financing for the borrower through its seller/servicer relationship with Freddie Mac.
“This transaction utilized Freddie Mac’s early index lock which locked the 10-year Treasury for 90 days on application,” Elmore says.
The building is managed by Advanced Real Estate Services (ARES), an Orange County based owner and manager of more than 7,000 units in Southern California, specifically Orange and Los Angeles Counties. ARES is also in the process of developing residential and mixed-use projects in San Juan Capistrano, Corona del Mar and Trabuco Canyon.