Beech Street Provides $32M Refinance to 648-Unit Property

Beech Street Capital provides a $32 million refinance for a 648-unit property in Delaware; Walker & Dunlop provides a $5.6 million refinance loan for a Vermont property; and Colliers negotiates the sale of two properties in Phoenix.

Christiana Meadows

Bear, Del.—Beech Street Capital LLC has provided a $32 million Fannie Mae structured adjustable rate mortgage (ARM) to refinance Christiana Meadows, a 648-unit, garden-style community in Bear, Del. The borrower, School House Trust, will use the proceeds to refinance existing debt of $26.4 million.

The Fannie Mae structured ARM that Beech Street arranged enabled School House Trust to approximate the net cash flow made possible by its tax-exempt floating rate bonds. The pay rate of 2.36 percent made the structured ARM a good alternative to a fixed-rate loan or a new LIBOR-based floating rate mortgage.

“The initial pay rate of the structured ARM was one of the lowest market-rate-priced floating rate instruments available,” says Brian Sykes, the loan’s originator, based out of Beech Street’s Boston office. “It allowed the borrower to maintain a rate very similar to what they were paying on the tax-exempt bonds but without the affordability restrictions.”

Beech Street provided the borrower with four years of interest-only payments. At the beginning of year five the amortization for the capped ARM is set at the prevailing fixed rate at time of closing rather than reset monthly based on the floating range. Chin Young Yi underwrote the transaction, which was closed by Nathan Burlingame. The Ackman-Ziff Real Estate Group LLC represented the borrower.

Walker & Dunlop closes $5.6M Fannie Mae refinance loan

Burlington, N.C.–Walker & Dunlop LLC provided a $5.6 million refinance loan for Trail’s End located in Burlington, N.C. The loan was structured with a 10-year term and a 25-year amortization.

The loan was underwritten to a 75 percent loan-to-value ratio with a 1.25 debt-service coverage ratio. This was Walker & Dunlop’s third transaction with the borrower, BMR Investments Inc., and the broker, Ryan Greer, Meridian Capital Group.

Trail’s End is a garden-style apartment community built in 1967. Common amenities include two outdoor pools, tennis courts, a BBQ area, two playgrounds and an office/clubhouse. The property was 90 percent leased at closing.

Walker & Dunlop Vice President of Multifamily Finance Will Baker originated the loan and led the Walker & Dunlop team.

Colliers sells two multifamily assets in Phoenix

Sunpoint Apartments

Phoenix—Colliers International in Greater Phoenix has negotiated the sale of two multifamily communities in Phoenix in separate transactions. The 224-unit Canyon Woods Apartments sold as a lender approved short sale for $3.1 million, or $14,000 per unit. California-based Arroyo Woods LLC bought the asset from the seller, an entity formed by CNC Investments of Dallas, Texas.

The property was built in 1984 and consists of 12 two-story buildings on 7 acres. There are 160 one-bedroom and 64 two-bedroom units. Amenities include two swimming pools, a spa, two laundry rooms, covered and open parking, and grilling areas.

The second transaction was the $4.9 million sale of Sunpoint Apartments, a 152-unit community that was also built in 1984. Los Angeles-based B.H. Management Inc. bought the asset from Miami-based seller, LNR Partners LLC. Sunpoint is a two-story garden-style apartment community consisting of 10 buildings on 6.9 acres. There are 64 one-bedroom units and 88 two-bedroom units. Amenities include a swimming pool, spa, playground and covered parking.

Bill Hahn, Jeff Sherman and Trevor Koskovich of Colliers’ Phoenix office represented the buyer and seller in both transactions.