Largo Arranges Construction Financing for Buffalo Redevelopment
- Jan 30, 2014
Buffalo, N.Y.—The former FWS complex in Buffalo is on track to be the city’s newest mixed-use residential asset thanks to construction to permanent financing arranged by the Largo Group of Companies. Developer Rocco Termini is converting the warehouse building into 46 market rate apartments and 25,886 square feet of commercial space.
The redevelopment utilizes historic tax credits. Zach Casale, account executive at Largo, arranged an $11 million, 2-year interest-only loan to renovate and stabilize the property. That loan is followed by a 5-year fixed-rate term on a 25 year amortization schedule.
PointOne initiates a value-add play outside Atlanta
Norcross, Ga.—PointOne Holdings initiated a value-add play with the acquisition of Grove Park Apartments, a 312-unit garden-style asset located outside Atlanta in Norcross, Ga. This is the firm’s sixth acquisition in the past 18 months. The property was purchased from special servicer CW Capital via an Auction.com transaction for $12.8 million. PointOne has plans to invest $2.5 million into the property. Acquisition and renovation financing was provided by A10 Capital.
The renovation plans will upgrade unit interiors, replace exterior siding, allow for mechanical/plumbing enhancements, and improve curb appeal. The amenities will also get a fresh update with the addition of a business center, dog park, security cameras and outdoor barbecues.
“Grove Park presents us with a fantastic opportunity to acquire a true value-add multifamily property in a great location, strategically close to another asset in our portfolio,” says Leo Peicher, managing member of PointOne Holdings. “We believe there is a trend moving folks away from mortgages and home ownership, which is leading to positive growth in the apartment rental market. We are taking advantage of this shift and look forward to further growth in this space.”
PointOne has completed over $100 million in acquisitions over the last 12 months. The firm is bullish on the Southeast.
NorthMarq arranges $15.5M in refinances with interest-only, cash-out features
Waterbury, Conn.—Robert Ranieri, senior vice president and managing director of NorthMarq Capital’s Greater Westchester New York/Connecticut regional office arranged refinancing for two multifamily properties: Scott Gardens & PR Scott Apartments and Realm Boca Raton.
Scott Gardens & PR Scott Apartments, located at Stonefield Drive, Waterbury, Conn., contains 276 units. Financing for the $8.6 million transaction was structured with a 10-year term with one-year interest-only, then a 30-year amortization schedule and was arranged for the borrower, Scott Gardens LLC & P. R. Scott LLC through NorthMarq’s seller/servicer relationship with Freddie Mac.
“This was a refinance of an existing Freddie Mac loan that was nearing its maturity,” said Ranieri. “Freddie Mac provided an attractive refinance option for 10 years with some interest-only.
Realm Boca Raton, located at SW 12th Street, SW 2nd Avenue and SW 1st Avenue, Boca Raton, Fla., contains 102 units. Financing for the $6.9 million permanent loan was structured with a seven-year term and 30-year amortization schedule for the borrower, BG Camino Apartments LLC. through NorthMarq’s seller/servicer relationship with Freddie Mac.
“The loan was the conversion of a floating-rate Freddie Mac loan into a fixed-rate Freddie Mac execution,” says Ranieri. “The borrower purchased the property two years ago, invested significant cap-ex and was able to increase the value of the property. The permanent loan resulted in the return of the majority of their equity in the property.”