Walker & Dunlop Arranges $43.5M for New Orleans Acquisition
- Dec 20, 2013
New Orleans—Walker & Dunlop Inc. has provided $43.5 million for the acquisition of Esplanade at City Park, a 436-unit community located in New Orleans. The 10-year, five-year interest only acquisition loan was provided by German American Capital Corp. for long-time Walker & Dunlop client Priderock Capital Partners. Stephen Farnsworth, senior vice president at Walker & Dunlop, structured the deal.
“This financing is indicative of the recent growth of the CMBS market nationwide, resulting in Walker & Dunlop’s ability to structure loans with higher interest-only periods for borrowers,” Farnsworth says. “The transaction also demonstrates the continued development of the multifamily market in New Orleans and the increased demand for out-of-state institutional equity. As a native New Orleans resident, I am proud to have contributed to financing Esplanade at City Park, one of the most iconic apartment communities in the city.”
Esplanade at City Park was built in 1973 and was renovated from 200-2010. The building sits two miles northwest of downtown New Orleans, and has views of the Bayou St. John waterway and City Park.
Home Properties buys 252 units in Massachusetts
Billerica, Mass.—Apartment REIT Home Properties has acquired a 252-unit property in Billerica, Mass., known as Middlesex Crossing. The transaction was valued at $40.3 million, or approximately $160,000 per unit. The property was 96 percent occupied at closing.
Built in three phase from 1969 to 1974, the community consists of 11 three-story brick garden-style buildings. Common amenities include a laundry facility in each building, a community recreation building with fitness center, a swimming pool, playground, dog park and barbecue area.
Home Properties plans to invest $3.7 million into Middlesex Crossing during the first three years of ownership. Targeted improvements include upgraded individual units by renovating kitchens and baths; replacing lighting, interior doors and original windows; and correcting differed maintenance to improve curb appeal. The repositioning will also redesign the leasing center/recreation building. Home Properties anticipates a 6.4 percent first year capitalization rate after allocating 2.7 percent of rental revenues for management and overhead expenses and before normalized capital expenditures.
Johnson Capital arranges $5.4M loan for purchase of affordable apartment community
Dallas—Johnson Capital announced that Jason Pumpelly, managing director in the firm’s Dallas office, has arranged $5.4 million in acquisition financing for a 330-unit apartment community in Dallas.
Eban Village I & II, built in 1998 and 2000 respectively, is situated on 15.01 acres and consists of 330 multifamily units. The community is comprised of 19 buildings ranging from two to three-stories, separate laundry facilities, a leasing office and a community center used for daycare.
The apartment community provides affordable housing for low to moderate-income families and individuals in Dallas’s Fair Park neighborhood. The property’s location, on Grand Avenue near Malcolm X Boulevard, positions it to take full advantage of the resources and capital already committed by the City of Dallas for the improvement of the surrounding community and its educational system.
The borrower, Hope Housing Foundation, is a non-profit entity that intends to use the loan proceeds to acquire the asset and make the necessary renovations to competitively reposition the property as high-quality affordable housing. The acquisition financing was provided by a regional bank.
Commenting on this transaction, Hope Housing Foundation President Alvin Johnson noted, “The rehabilitation of Eban Village I & II will promote the city’s goals to revitalize the Fair Park neighborhood, providing a higher quality of life for low to moderate income families.”