Security Properties Acquires Two Seattle-Area Communities
- Jul 19, 2012
Seattle—Security Properties Inc. has acquired two new apartment properties through its Multifamily Fund. The fund was launched in June 2011 to make direct investments, either through wholly-owned entities or in joint venture partnership with institutions. The most recent acquisition of Newport Crossing and 700 Broadway represent the fund’s third closing.
Newport Crossing is a 192-unit community located in Newcastle, Wash. It was picked up for $30.4 million. The 1990-built property is located in a town-center located next to transit service.
700 Broadway is a 59-unit property located in Seattle’s Capitol Hill neighborhood. It was purchased for $20.3 million. The asset includes 10,673 square feet of retail.
“The Seattle purchases reflect our overall strategy of pursuing the multifamily real estate investment opportunities in high-growth western markets characterized by sustainable job and population growth, significant barriers to development and high home ownership costs,” says Ed McGovern, managing director of capital markets at Security. “Seattle’s market is typical of what we are after: a dynamic economy, solid demographics and supply constraints combine to make investing in the region compelling.”
Beech Street closes $25M Fannie loan for Calif. asset
West Covina, Calif.—Beech Street Capital has closed a $25 million Fannie Mae DUS loan to refinance Woodside Village, a 460-unit asset located in West Covina, Calif. Kristen Croxton and Greg Reed, senior vice presidents in Beech Street’s office in Newport Beach, originated the transaction. Paul Conzelman of SC Development represented the borrower.
Reed and Croxton arranged a 30-year fixed rate Fannie Mae loan structure to retire the existing debt and complement the borrower’s long-term investment plan. The fixed-rate loan has a 30-year term with 29.5 years of yield maintenance, and 30-year amortization. The borrowers have owned the complex since 1972.
KeyBank arranges bridge, then $67M Fannie Mae take out, loans
Fredericksburg, Va.–KeyBank Real Estate Capital recently provided two loans totaling $66.69 million through Fannie Mae for two multifamily properties in Fredericksburg, Va.
The loans were used to repay two bridge loans totaling $62.55 million that KeyBank’s Institutional Capital Group provided for the borrower, BPG Properties Inc., to acquire the multifamily portfolio on March 28, 2012. The Manor at England Run, a 476-unit facility, and The Greens at Falls Run, a 200-unit facility, both received seven-year, fixed interest rate loans.
The sponsor was introduced to KeyBank through Michael Hawkins, a member of Key’s Real Estate Investment Banking Group, who was instrumental in bringing the buyer and the seller together. Josh Mayers, a member of Key’s Institutional Capital Group, quickly executed two bridge loans to meet the buyer’s aggressive acquisition timeline. Jeff Aycock, a member of Key’s Multifamily Lending Group, was then able to arrange the seven-year, fixed interest rate loans that were used to fully repay the bridge loans.