Capital One Multifamily Closes $63.3M Freddie Mac Acquisition Loan

Capital One Multifamily Finance provides a 10-year fixed-rate loan for the acquisition of Artessa at Quarry Village; and a Berkshire Group affiliate purchases a Class-A property in Oakland, Calif.

Bethesda, Md.—Capital One Multifamily Finance announced that it has provided a $63.3 million fixed-rate Freddie Mac loan for the acquisition of Artessa at Quarry Village, a 280-unit luxury apartment community in San Antonio. The transaction was originated by Brian Sykes, Capital One senior vice president of originations based in the company’s Boston office.

The purchaser, Intercontinental Real Estate, has completed a number of transactions with Capital One Multifamily through Intercontinental’s U.S. Real Estate Investment Fund, and has granted Capital One exclusive rights to represent Freddie Mac.

Completed in 2009, Artessa is located in Alamo Heights, a desirable neighborhood six miles from downtown San Antonio with an excellent school system. The community is 10 minutes by foot from the Riverwalk entertainment district. Artessa offers one-, two- and three-bedroom units, and was 95 percent occupied as of October 2014. The property also features ground-floor retail space, consisting of 27 retail suites totaling 18 percent of its gross leasable area.

“We emphasized the value to the community of the retail space in our discussions with Freddie Mac,” Sykes says. “The retail tenants are carefully chosen to reflect the needs of renters.” The commercial space is 86 percent occupied.

Sykes’s team was able to take advantage of Freddie Mac’s Index Locking Program, allowing Intercontinental to lock-in a 10-year Treasury at just 2.02 percent. Freddie Mac held the quoted spread despite a subsequent dip in Treasuries, which allowed Intercontinental to close with a very competitive all-in rate.

“We continue to work with Capital One Multifamily because of its commitment to delivering the best possible terms,” says Paul J. Nasser, the CFO and COO at Intercontinental. “In this case, Brian and his team not only delivered a competitive price, but also closed the deal in under 40 days. That says a lot about their expertise and their dedication to service.”

The fixed-rate loan has a 10-year term with 10 years interest and 9.75 years defeasance.

Berkshire Group affiliate purchases Class-A property in Oakland, Calif.

Boston—Berkshire Group, a real estate investment management company known for its vertically-integrated operating platform and experience in the multifamily sector, announced that an affiliate of the company has acquired 901 Jefferson, a 75-unit Class-A apartment community located in Oakland, Calif.

Specific financial terms of the transaction were not disclosed. The property was acquired from Madison Park Financial. Berkshire Communities, the property management division of Berkshire Group, will manage the apartment community.

“We believe Oakland has solid underlying fundamentals, and we expect the market’s strong tech sector and relative affordability to drive both population and employment growth,” says David Olney, managing director, head of multifamily investments, Berkshire Group. “901 Jefferson allows us to further expand into this market, and we view it as a compelling property–it is a modern class-A community in a gentrifying live-work-play environment with access to public transit and major roadways, close to the Bay Area’s major employment centers.”

Built in 2008, 901 Jefferson is situated in Downtown Oakland, in close proximity to the Bay Area’s transit system, BART, as well as major roadways I-80 and I-580, offering access to San Francisco’s Downtown and Financial District areas, as well as the greater East Bay including Berkeley, Emeryville, and Walnut Creek. Unit interiors feature modern finishes such as hard stone countertops, stainless steel appliances and in-unit laundry appliances. Resident common spaces include a central courtyard with portable grills, as well as parking.