TODAY’S DEALS: Colonial Properties Trust Closes $350M Fannie Mae Credit Facility, and Other Transactions
- Mar 04, 2009
By Anuradha Kher, Online News EditorBirmingham, Ala.–Colonial Properties Trust, a multifamily real estate investment trust (REIT), has closed a $350 million secured credit facility originated by PNC ARCS LLC for repurchase by Fannie Mae. The facility has a 10-year term, carries a weighted average fixed interest rate of 6.04 percent, and is secured by 19 multifamily properties totaling 6,565 units. The proceeds from the credit facility will be used to repay all but approximately $35 million of the outstanding balance on the company’s $675 million unsecured line of credit. This facility will provide additional liquidity to address the debt maturities through 2010 and support the company’s unsecured bond repurchase program.“One of our top priorities for the first half of 2009 was to close this financing with Fannie Mae,” Thomas H. Lowder, chairman and CEO of Colonial Properties Trust, says. “This new financing enhances our strong liquidity position and shows that Fannie Mae remains a source of attractive financing for the multifamily market.”Meridian Capital Arranges Financing Over $2M in Financing for 16 UnitsLos Angeles–Meridian Capital Group arranged financing in the amount of $2,035,000 for a total of 16 multifamily units between two Southern California properties located at 5414 Fountain Ave. in Hollywood and 14 Ozone Ave. (pictured) in Venice Beach. Meridian’s Los Angeles office successfully negotiated on behalf of the borrower, Monem Corp., to secure rates of 5.5 percent fixed for five-year terms.Fountain Avenue is comprised of five buildings with a total of 10 units. The borrower assumed this loan commitment from the lender when the previous owner decided to sell the property instead of refinance it. Ozone Avenue is a three-story property with a total of 6 units. The borrower had closed on this ocean front property in a rare off-market all cash transaction.