Canadian REIT Grabs Luxury San Antonio Apartments
- Apr 15, 2015
San Antonio—Canada’s Pure Multi-Family REIT has found value in Texas. The firm announced this week that it has entered into an agreement to acquire Park West Avenue, a 2014-built luxury apartment asset in San Antonio near the Hill County Village and Church Hill Estates submarkets.
The 278-unit community has a $54.3 million purchase price, which represents a stabilized going-in cap rate of 5.75 percent. The transaction is expected to close in late April. Pure Multi-Family intends to fund a portion of the purchase price with cash from the firm’s recently completed property dispositions and new mortgage financing locked-in for a 15-year term at an interest rate of 4.02 percent.
The 29-acre gated community features a clubhouse, 24-hour health club, a swimming pool, indoor/outdoor aqua lounge, a volleyball court, courtyards and barbecue areas.
Walker & Dunlop originates $27M Fannie Mae loan at 85.8 percent LTV
Bethesda, Md.–Walker & Dunlop Inc. announced that it originated a $26.6 million acquisition loan for Sandpiper Apartments, located in Westminster, Colo. The transaction was executed under Fannie Mae’s Moderate Rehabilitation program and allowed the borrower, ColRich Communities, to purchase the property and leverage their construction expertise to substantially renovate, reposition, and revitalize the asset.
Trevor Fase and Mark Grace led the Walker & Dunlop team that structured the 12-year loan with five-years of interest-only. In order to maximize the loan proceeds for the borrower, Walker & Dunlop underwrote the transaction at a minimum 1.25x DSCR and escrowed part of the borrower’s planned renovation costs to maintain a maximum 75 percent loan-to-cost.
Originally constructed in 1973, Sandpiper Apartments consists of 357 one and two-bedroom units spread over 30 garden-style apartment buildings. The development sits on 17.3 acres and includes amenities such as three heated community pools, fenced dog park, children’s playground, BBQ/picnic area, sand volleyball court, game room, business center and a fitness center. ColRich will be investing a significant amount of capital into the property and completely repositioning the asset.