Steadfast Apartment REIT Closes First Acquisition
- May 30, 2014
Spring Hill, Tenn.—Steadfast Apartment REIT has acquired its first apartment community, Villages at Spring Hill, a 176-unit community located in Spring Hill, Tenn. The purchase price was $14.2 million. The 1994-built asset is located 40 minutes south of Nashville and features 15 two-story buildings with one- and two-bedroom apartments and three-bedroom townhomes. Amenities include a pool, tennis courts, laundry facilities, a picnic and grill area, and a sand volley ball court.
In connection with the property acquisition, previously authorized cash distributions equal to an annualized rate of 6 percent on the purchase price of $15 per share will begin being paid.
“These are two very important milestones for our new REIT,” says Ella Shaw Neyland, president of Steadfast Apartment REIT. “Villages at Spring Hill complements the REIT’s strategy of acquiring quality apartment communities in top-performing markets. We believe this acquisition approach will bode well for the REIT and its investors.”
The property presents a value-enhancement opportunity and Steadfast plans to complete selective interior upgrades when turning the apartment homes between residents.
For more information on Steadfast, be sure to check out MHN’s recent interview with Ella Shaw Neyland.
NorthMarq finalizes $41M seven-year refinancing loan
Los Angeles–Michael T. Elmore, executive vice president/managing director of NorthMarq Capital’s Los Angeles based regional office secured the $41 million refinance of Ridgecrest Apartments, a 240-unit multifamily property located at 21486 Lake Forest Drive, Lake Forest, Calif.
The transaction was structured with seven-year term and 30-year amortization schedule following a two-year interest-only period. NorthMarq arranged financing for the borrower through its seller/servicer with Freddie Mac, who agreed to fund a cash-out mortgage on a 1.25 debt coverage ratio with two-years interest-only based on strong sponsorship and an infill Orange County location.
“Freddie Mac utilized their new index lock to help the borrower hedge a fully leveraged loan on which proceeds were critical to a maturing loan payoff,” said Elmore. “During the underwriting process, cash flow improved and Freddie Mac upsized the loan.
Cohen Financial secures $26.3M bridge loan for fractured suburban Orlando condo
Winter Springs, Fla.—National real estate capital services firm Cohen Financial has secured a $26.3 million bridge loan from NXT Capital to refinance Serenity at Tuskawilla, a 368-unit failed condo conversion that reverted to 100 percent rentals at closing. The new loan provides more than 90 percent loan-to-cost financing to pay off the old loan at a discount. It also provides financing for a capital improvement plan.
“This was a challenging deal given the fact that it was not stabilized and had a date certain at which the condominium was to be terminated,” says Eric McGlynn, director at Cohen Financial. “NXT won the deal not only because they provided competitive terms but also because they had previous experience with financing several other fractured condominiums in Florida. They understood the issues associated with this type of transaction and met a tight closing deadline.”
McGlynn worked with managing director Daniel Rosenberg in placing the loan. The borrower was advised by John Stone of Colliers International’s Tampa office.
Serenity at Tuskawilla is located at 4545 Willa Creek Drive in Winter Springs, Florida, a suburb of Orlando. Occupancy is expected to increase and stabilize in the next year with the completion of a comprehensive capital improvement plan