Morgan Properties Grabs 558-Unit Asset

Morgan Properties buys a property for $27.4 million; Beech Street Closes a $10.5 million Fannie Mae conventional loan; and NorthMarq arranges $21.3 million in interest-only, six-year loans through a life insurance company.

Garden View Apartments

Randallstown, Md.—Morgan Properties, together with its partner Core Properties, has completed the acquisition of Garden View Apartments, a 588-unit asset located in Randallstown, Md. The property was purchased for $27.4 million, or approximately $46,000 per unit.

“The purchase of Garden View Apartments is a natural fit with our current portfolio of 15 communities, comprised of over 5,000 apartment homes located in the Baltimore/Washington, D.C. corridor,” says Mitchell Morgan, founder, president and chief executive officer of Morgan Properties. “We expect to invest significant capital to upgrade individual units, correct deferred maintenance, enhance curb appeal and upgrade kitchens and bathrooms to completely reposition the property while enhancing our residents’ quality of life.”

The acquisition represented the firm’s fourth purchase in 2012. M&T Bank provided senior acquisition and construction debt financing out of its Philadelphia office, and Blank Rome LLP provided legal advice to the joint venture on the acquisition and the financing.

Amenities at the property include a swimming pool, picnic and grilling areas, a fitness center, children’s playground, and a dog run.

Beech Street Closes $10.5M for Philadelphia Affordable Housing

Cricket Court Commons

Philadelphia, Pa.—Beach Street Capital LLC has closed a $10.5 million Fannie Mae conventional loan to refinance Cricket Court Commons, a 228-unit LIHTC apartment complex in Philadelphia. David Cohen and Ben Brown originated the transaction for Meridian Capital Group LLC, which was financed by Beech Street Capital as part of its correspondent relationship with Meridian.

Cricket Court Commons was originally built in phases in 1935 and 1948, and underwent a major renovation between 1998 and 2000, receiving LIHTC in addition to tax-exempt bond financing which coincided with the current owner purchasing the property. The asset is located in the Germantown neighborhood, approximately six miles north of Philadelphia’ Center City.

NorthMarq arranges $21.3M, I/O six-year loans through life insurance company

Colorado Springs, Colo.—Mark Grace, vice president of NorthMarq’s Los Angeles Regional office, arranged combined first mortgage refinancings in the amount of $21.3 million for two market-rate multifamily properties containing a total of 354 units.

The Commons at Briargate Apartments, located at 2845 Freewood Point in Colorado Springs, Colo., contains 194 units and was refinanced at $11.1 million. Pinnacle at Fort Union Apartments, located at 1151 East 6720 South in Midvale, Utah, contains 160 units and was refinance at $10.2 million.

Financing for both of these transactions was based on a six-year interest-only term and was arranged for the borrower by NorthMarq through its relationship with a correspondent life insurance company.

The borrower required aggressive flexibility in prepayment as well as interest only for term to accommodate fund hold period requirements. The life insurance company was able to accommodate with a step down prepayment structure allowing for prepayment after the first half of the loan terms at a very competitive rate. “The lender was able to close quickly on these two heavily structured transactions with low closing costs,” said Grace.