Berkeley Point Provides $10.9M Acquisition Loan to Formerly Bank-Owned Property
- Apr 24, 2013
Bradenton, Fla.—Berkeley Point Capital LLC recently closed a $10,875,000 loan for the acquisition of Braden Lakes Apartments, a 264-unit garden-style, class-B/C, apartment community located in Bradenton, Manatee County, Fla.
Financing was arranged under Freddie Mac’s Capital Markets Execution (CME) Adjustable Rate program, which provides an attractive low adjustable rate and flexible prepayment options. This transaction was structured to be a seven-year, 2.58 percent adjustable-rate loan, with one-year interest-only followed by a 30-year amortization schedule.
The loan has a one-year prepayment lockout, and can either be repaid at a one percent premium or converted to longer-term fixed-rate financing. The interest rate cap was placed by third party provider, which allowed for shorter-term initial coverage period than Freddie Mac’s embedded cap option which had recently been discontinued. Berkeley Point Capital’s Brian Kochan, director in its Bethesda, Md. office led the transaction for the Berkeley Point team.
Prior to the financing, the property was bank-owned for several years. At a 97 percent physical occupancy combined with growing fundamentals, the property has noteworthy upside potential. Additionally, the appraised value currently exceeds the purchase price.
“We are pleased to once again work with this sponsor to help meet their investment strategy needs. This transaction provided the best possible combination of pre-payment flexibility, very low floating interest rate, and the ability to re-leverage the asset after any planned renovations,” said Jim McDevitt, president at Berkeley Point Capital. “We look forward to continuing our partnership with the firm and will continue to demonstrate our ability to execute as promised.”
Oak Grove Capital originates multifamily loans
Coppermine Run, Herndon, Va.—Oak Grove Capital recently originated 10 loans totaling $350.2 million for affordable, market rate, and seniors housing facilities. The deals, which range from $259 million to $1.3 million, were Fannie Mae, Freddie Mae or HUD FHA-insured financings.
The properties included Coppermine Run, Herndon, Va., which received $34.86 million, and Raven Crossings, Altamonte Springs, Fla., which obtained $13.18 million. Both transactions were Fannie Mae MBS affordable housing financings.