Steadfast Enters Colorado with $40M Buy
- Dec 29, 2014
Irvine, Calif.—Steadfast Apartment REIT announced today the $40 million acquisition of The Oasis, a 252-unit apartment community in Colorado Springs, Colo. The transaction represents the REIT’s entry into Colorado, and boosts its portfolio to seven apartment communities across five states purchased for $275 million.
“We are excited to add The Oasis to our growing roster of apartment communities,” says Ella Shaw Neyland, president of Steadfast Apartment REIT. “We believe this property is well-positioned in a market experiencing mid-wage job growth that is much stronger than the U.S. average, and has limited new apartment construction.”
Constructed in 1996 on approximately 15 acres, The Oasis boasts 16 two- and three-story garden style buildings with one- and two-bedroom units with average in-place rents of $1,102. The apartment homes offer residents a comfortable lifestyle with central air conditioning, balconies/patios, washers and dryers, walk-in closets, and fireplaces and attached garages in select units. As of December 1, the occupancy was 96 percent.
Additional site improvements include a clubhouse and leasing office, fitness center, swimming pool, hot tub and a business center.
CPR Money provides $7.8M for Kansas City acquisition and rehab
Kansas City, Mo.—Micro commercial real estate lender CPR Money has arranged the funding of a $7.8 million acquisition and rehabilitation first mortgage loan in Kansas City, Mo., that will be used by the sponsor to acquire a 304-unit apartment asset. The buyer plans to bring 120 down units back online, and to complete property renovations and upgrade HVAC, electrical and plumbing, and improve the façade and interior finishes.
The property is located four miles east of downtown Kansas City, and is poised to benefit from the demand for workforce housing in East Kansas City.
“Kansas City is a great market for entrepreneurial real estate investing,” says Dan Palmier, president and CEO of CPR Money. “This deal represents what CPR Money does best: see the value in a sponsor’s vision and quickly provide hassle-free capital to help them close the deal.”
Walker & Dunlop originates $23M bridge loan for dedicated student property
Austin, Texas—Walker & Dunlop Inc. originated a $23 million acquisition loan for the Ballpark, a student housing apartment community located in Austin, Texas. Walker & Dunlop provided short-term bridge financing prior to the borrower, Nimes Capital, obtaining a Freddie Mac 10-year conventional loan.
This property was purchased by Nimes Capital through a “stalking horse” auction in October 2014. Walker & Dunlop was able to provide a non-recourse interim loan allowing the borrower to acquire the asset on the courthouse steps after being awarded the deal through a full sales and marketing process by FourPoint Investments. The interim loan gave the borrower and Walker & Dunlop time to setup a 10-year permanent Freddie Mac non-recourse loan which closed in December 2014. By utilizing Freddie Mac’s index lock feature, the borrower was able to take advantage of historically low interest rates.
Built in 2000, the Ballpark is a 282-unit and 768-bed, dedicated student, garden-style, apartment community located in the heart of the East Riverside within a 15 minute drive to all of Austin’s major academic institutions including the University of Texas at Austin. The upgraded amenities at the Ballpark include a computer lab, free internet, volleyball court, athletic field and fitness facility and a sparkling pool.
Will Baker, managing director, led the Walker & Dunlop team that structured the financing. Baker says, “This transaction illustrates the unique financing solutions and the dedication Walker & Dunlop provides to support our clients financing needs.” Additionally, Baker comments, “Walker & Dunlop’s proprietary bridge loan program offers short-term non-recourse loans to our borrowers and once the property is ready for permanent financing, we can facilitate a seamless transition to Fannie Mae, Freddie Mac or HUD financing.”
Nitan Chexal, chief executive officer at Nimes Capital says, “We were very pleased with Will Baker’s team at Walker & Dunlop. Their creative execution strategy allowed us to seamlessly acquire this asset, and we look forward to working with them again in the future.”