Jacksonville, Fla.—Holliday Fenoglio Fowler has arranged a $28.5 million refinancing for Indigo Apartments, a 323-unit asset located in Jacksonville, Fla. The firm worked to secure a 10-year, fixed-rate loan through GE Real Estate for the Class A, garden-style community.
“GE Recognized the high quality of both the asset and sponsorship and stepped up to deliver a very quick and aggressive execution,” says Elliott Throne, director at HFF.
Located at 13525 Bartram Park Blvd., the 2007-built community features one-, two- and three-bedroom units and a community amenity package that includes a swimming pool, hot tub, fitness center, playground, clubhouse and business center. Occupancy stands at 97 percent.
NorthMarq, West Coast Capital Place $11.5M Mortgage for a 124-unit Asset
Redlands, Calif.—NorthMarq Capital and West Coast Capital have arranged a first mortgage refinancing of $11.5 million for Sunset View Apartments, a 124-unit market-rate property located at 1250 N. University Street in Redlands, Calif. Financing was based on a 10-year term and a 30-year amortization schedule. NorthMarq placed its portion of the financing for the borrower through its seller-service relationship with Freddie Mac.
“This was a cash-out refinancing of maturing Freddie Mac loan,” says Robert Hervey, senior president and senior managing director of NorthMarq’s Los Angeles regional office. “The borrower is very strong and experienced, which made the transaction smoothly.”
Beech Street completes Fannie Mae acquisition loan
Lewisville, Texas—Beech Street Capital LLC announced that it closed a Fannie Mae conventional loan for the acquisition of The Place at Park Timbers, totaling 230 units, in Lewisville, Texas, a suburb of Dallas. Senior Vice President Chuck Christensen, headquartered in Beech Street’s Newport Beach, Calif., office, originated the transaction. The borrower was a partnership organized by Allmark Properties, located in Rancho Cucamonga, Calif.
“This transaction is an excellent illustration of Beech Street’s unwavering focus on serving the customer,” says Christensen. “As with any real estate transaction, there’s always a potential for surprise—and when that occurs our approach at Beech Street is to find a constructive way to address it.” In this case, the buyer’s survey revealed that a portion of one of the property’s parking lots was actually not owned by the seller, a fact that the seller had not been aware of. Beech Street worked with the surveyor and the two parties to legally attach this parcel to the asset.
But that was just one of the challenges the borrower faced. The flood certificate for the property categorized five of its 14 apartments as located in a special flood hazard area. This meant they required full flood insurance coverage, an expensive proposition. Working with the surveyor, Beech Street determined that the five buildings were miscategorized and were actually above FEMA’s base flood elevation. These findings enabled the borrower to secure the necessary letter of map amendment from the agency, reducing its flood insurance bill by 50 percent.
“In a situation like this, our goal is always to mitigate weakness and emphasize strengths,” says Christensen. “This borrower made it easy.” Beech Street highlighted Allmark’s experience in the market: it owns more than 1,000 units in Texas, including a 260-unit complex located within a mile of the property. And although ownership is syndicated, Beech Street stressed that the group put up a substantial down payment and the vast majority of limited partners were repeat investors.
Underlying all these efforts was Beech Street’s commitment to act as expeditiously as possible. At a time when the 10-year Treasury was rapidly increasing, Beech Street was able to close the deal quickly, enabling the borrower to lock in a very favorable interest rate that was fixed for 10 years.
For its part, Allmark was appreciative. “Given the circumstance we were dealing with, I’m not sure that anyone could have done what Beech Street did for us,” says Mike Krcelic, Allmark’s vice president. “They were a pleasure to do business with.”
The Place at Park Timbers offers residents 11 floor plans, a clubhouse, two pools, a spa and fitness center. Units feature all-electric kitchens, central air, private balconies and patios, and walk-in closets, among other amenities. The property is near highly regarded schools and conveniently located close to shopping and restaurants.