Beech Street Provides $12.6M in Acquisition Financing
- Aug 23, 2011
Philadelphia—Beech Street Capital LLC has provided $12.6 million in Fannie Mae DUS loans for the acquisition of a four-property package totaling 225 units in Montgomery County, Pa. The transaction was originated by Meridian Capital Group LLC.
Three of the properties—Wellington, Livingstone and Oak Terrace—are operated as one property located in Hatboro, Pa. Longford Apartments, located in Amber, Pa., was purchased with the others, but was financed by Beech Street as a separate loan.
The fixed-rate loans have a 10-year term with a 2.5 year interest-only period and 9.5 years of yield maintenance. The financing also included additional leverage to cover closing costs and planned improvements.
“Beech met the borrower’s goal of an extremely quick closing necessary for the acquisition,” says Israel Schubert, managing director at Meridian. “The sponsors, The Galman Group, are one of the most respected owners in the region and own and manage more than 6,000 quality apartment communities and condominiums.”
Walker & Dunlop closes $14M refinance loan for D.C. student housing
Washington, D.C.—Walker & Dunlop LLC has provided a $14 million loan for a 32-unit mid-rise student housing located at 2807 Connecticut Ave. in Washington, D.C. The loan was structured with a 25-year amortization and a fixed 5-year term, followed by a 5-year LIBOR swap rare.
Cardinal Bank provided the financing. The student apartments were built in 1924. The property is located west of the National Zoo and two blocks from the Woodley Park Metro Station. The asset was 100 percent occupied at closing.
Lee & Associates transacts $4.7M sale to private investment group
Inglewood, Calif.–Robert Leveen, a Principal with Lee & Associates Investment Services Group, represented a group of private investors in the acquisition of The Lido and Beach Hill Apartments, a 41-unit multifamily complex located at 916 and 924 W. Beach Avenue in Inglewood, Calif., for $4.7 million or $114,634 per unit.
The asset sold at a 6.75 percent cap rate at acquisition.
“The buyers have considerable REIT experience, and formed their group about one year ago to leverage their experience with value-add acquisitions and their relationships in the finance arena,” says Leveen. “We were able to assist them in identifying a property in a strong location that fit their acquisition profile.”
This is the second time Leveen has worked with the buyers.
The seller had owned the property since the early 1970s. The building was initially listed for sale about three years ago at $5.9 million. The property, which consists of two buildings, was constructed in the early 1960s with a unit mix comprised of 20 one- bedroom/one-bath, 19 two-bedroom/two-bath, and two three-bedroom/two-bath apartments.
The property, which is not rent controlled, had undergone significant capital improvements. The new owners plan to build on the sellers’ turnkey treatment of the property with additional cosmetic improvements including a new façade and landscaping. It is their intention to reposition the asset into the most desirable place for tenants to live in the local submarket.