Cortland Partners Acquires Metro Atlanta Apartments
- Feb 15, 2011
Atlanta—Cortland Partners has acquired Kendall Creek Apartments, a 308-unit property located in metro Atlanta in the Peachtree Corners submarket. The community, which is 93 percent occupied, is a stabilized asset selling in a distressed market.
“This is simply an opportunity for Cortland Partners to purchase a well located property in the path of growth, well below market value,” says Brad Brown, Cortland’s chief acquisitions officer. “The northern Peachtree Road corridor is a strong job market, and we expect it will see rental rate growth on-site in the near term.”
The property has recently undergone significant renovations of the amenities, and finishes were updated in the unit interiors. Cortland plans to address deferred maintenance including exterior paint, roof replacement and storm drainage repair.
Beech Street closes $80.2M in Freddie Mac loans for two New York high rises
Bethesda, Md.–Thanks to its streamlined execution and strategic partnerships, Beech Street Capital LLC, has closed two Freddie Mac Program Plus loans totaling $80.2 million in just 30 days, the company announced today.
The loans were used to refinance Trump Village I and Trump Village II, two attractive high-rise apartment buildings in the Brighton Beach section of Brooklyn, N.Y. Originated by Meridian Capital Group LLC, the transactions were financed by Beech Street as part of its correspondent relationship with Meridian.
“These transactions reflect our steadily growing relationship with Freddie Mac,” says Grace Huebscher, president and CEO of Beech Street Capital. “This is an important collaboration that Beech Street looks forward to expanding in 2011.” Huebscher also noted that Beech Street’s 30-day turnaround on these transactions reflects the company’s emphasis on certainty of execution.
Beech Street’s ability to act promptly on a deal of this size was important to Freddie Mac. “We are pleased that our relationship with Beech Street enabled us to satisfy a repeat borrower,” says Michael Edelman, managing regional director at Freddie Mac. “This is particularly valuable to us because these transactions involved highly affordable, high-quality properties.”
Each 23-story building in Trump Village I and II contains 441 units and enjoys views of the beach to the south and Manhattan to the northwest. Newly renovated units, surface parking, stabilized rent, and access to the New York City subway system are among the attractions of both properties.
Beech Street’s performance also garnered praise from Meridian. “Beech Street’s success in rate-locking and closing both loans within 30 days is a highly significant accomplishment, considering the complexity of these deals,” says Abraham Hirsch, a managing director at Meridian.
The fixed-rate loans have terms of 10 years, five years interest-only, with 9.5 years of yield maintenance and a thirty-year amortization schedule payable on an actual/360 basis.
Abacus Capital Group sells $68M California multifamily complex
Petaluma, Calif.—An investment fund advised by New York-based Abacus Capital Group, in a partnership with real estate private equity fund QVT Mount Auburn Capital LP, sold the Enclave at Adobe Creek, a 492-unit property located in Petaluma, for $68 million. Abacus and QVT Mount Auburn purchased the property, formerly known as Lakeville Resort, in October 2009, for $52 million. The investment is an example of Abacus’s “value-add” strategy.
“Abacus recognized that the property could be repositioned both physically and operationally to garner a greater share of the high end of the market,” says Greg Lyden, Abacus executive vice president.
Upon purchasing the complex in 2009, the partnership invested $2 million into maintenance issues and re-branding the property. Abacus worked with its design team to renovate the clubhouse, amenities and select unit interiors. The new clubhouse has a fitness center, lounge, business center and a resort-style pool area with gas barbecues.