Praedium Group Invests $18.5M into N.J. Community

The Praedium Group purchases an $18.5 million equity position in a N.J. community; Beech Street Capital provides a $34 million refinance for two Texas communities; and Arbor's Michigan office closes 11 Fannie Mae deals.

Ave Union

Union, N.J.—The Praedium Group has purchased an $18.5 million preferred equity position in AVE Union, a 227-unit, Class A community located in Union, N.J., directly adjacent to the Union Train Station. The investment was made as part of a recapitalization of the property with operating partner Korman Communities.

“The limited inventory of new, top-quality rental housing in close proximity to New York City together with significant barriers to entry, made this an attractive investment opportunity,” says Mason Sleeper, principal at Praedium.

Ave Union contains luxury furnished and unfurnished one and two-bedroom rental units. All apartments feature gourmet kitchens with stainless steel appliances, granite countertops and mahogany cabinetry. Community amenities include a lap pool, garden with fire pit, business center, fitness facility, and a complimentary weekday club breakfast.

Beech Street provides $34M refinance for Texas portfolio

Arlington, Texas—Beech Street Capital has provided $34 million in Fannie Mae conventional loans to refinance two garden-style communities in Arlington and Irving, Texas. The two properties total over 700 units.

“This transaction reflects our ability to work closely with Fannie Mae and the borrower to get things done,” says Larry Sneathern, senior vice president in Beech Street’s Dallas office. “Our priority is streamlined execution.”

Beech Street was able to respond to the borrower’s goal of locking both deals within 55 days of application. The Arlington, Texas, community has over 300 units and is located in the second-largest apartment submarket in the Dallas-Fort Worth metropolitan area. The property in Irving, Texas, has 400 units.

Both properties now have a fixed-rate loan of 10 years and a 30-year amortization schedule, payable on an actual/360 basis, with 3 years of interest only (Arlington) and 5 years of interest only (Irving).

Arbor’s Michigan office closes 11 Fannie Mae deals

Bloomfield Hills, Mich.–Arbor Commercial Funding LLC announced the recent funding of 11 loans totaling $53.7 million under the Fannie Mae DUS Loan, Fannie Mae DUS Small Loan, Fannie Mae DUS Market Rate Co-op and Fannie Mae DUS Limited Equity Co-op product lines from the Midwest to the West Coast.

All of the loans were originated by Michael Jehle, midwest regional director in Arbor’s full-service Bloomfield Hills, Mich., office.

“This group of loans represent Arbor’s unique ability to fund multifamily loans throughout the United States, including those areas hardest hit in the most recent recession, primarily Michigan and the Midwest,” Jehle says. “Arbor prides itself on providing creative solutions to meet and exceed the needs and expectations of its customers.”

The loans include:

  • Carriage Hill East, East Lansing, Mich.–This 143-unit complex received $5,000,000 funded under the Fannie Mae DUS Loan product line. The 10-year acquisition loan amortizes on a 30-year schedule.
  • Appletree Apartments, Sparta, Mich.–This 143-unit complex received $2,250,000 funded under the Fannie Mae DUS Small Loan product line. The 10-year refinance loan amortizes on a 30-year schedule.
  • Wood Mar Apartments, Lansing Township, Mich.–This 86-unit complex received $1,760,000 funded under the Fannie Mae DUS Loan product line. This 10-year loan amortizes on a 30-year schedule.
  • Colonial Square Cooperative, Ann Arbor Mich.–This 427-unit complex received $1,750,000 funded under the Fannie Mae DUS Market Rate Co-op product line. The five-year loan amortizes on a five-year schedule.
  • Tree Tops Apartments, Northville, Mich.–This 72-unit complex received $1,732,500 funded under the Fannie Mae DUS Small Loan product line. The 10-year loan amortizes on a 30-year schedule.
  • Cloisters Apartments, Clawson, Mich.–This 49-unit complex received $1,595,000 funded under the Fannie Mae DUS Standard Loan product line. The 10-year loan amortizes on a 30-year schedule.
  • Edgewood Court North, Birmingham, Mich.–This 30-unit complex received $1,127,500 funded under the Fannie Mae DUS Standard Loan product line. The10-year loan amortizes on a 30-year schedule.
  • River Oaks Towne Houses Cooperative, Calumet City, Ill.–This 270-unit complex received $5,800,000 funded under the Fannie Mae DUS Limited Equity Co-op product line. The 30-year loan amortizes on a 30-year schedule.
  • Erie Apartments, Chicago – This 13-unit complex received $900,000 funded under the Fannie Mae DUS Small Loan product line. The 10-year loan amortizes on a 30-year schedule.
  • Pine Tree Townhouses Cooperative, Lawrence, Kansas–This 160-unit complex received $2,527,238 funded under the Fannie Mae DUS Limited Equity Co-op product line. The 10-year loan amortizes on a 30-year schedule.
  • La Pacifica Apartments, Moreno Valley, Calif.–This 360-unit complex received $27,000,000 funded under the Fannie Mae DUS Standard Loan product line. The 10-year loan amortizes on a 30-year schedule.
  • Crescent Cove Apartments Phase II, Evans, Colo. –This 48-unit complex received $2,282,200 funded under the Fannie Mae DUS Standard Loan product line. The 8.75-year loan amortizes on a 30-year schedule.