Two Louisiana Apartments Obtain $23M Refi
- Jun 12, 2013
Baton Rouge, La.—Interest rates remain low, and apartment owners are still eager to take advantage of that environment, according to Beech Street Capital. Recently the company closed on two Fannie Mae loans to refinance a pair of Louisiana apartment buildings owned by the same entity.
The refinancing included a $15.4 million loan for the Edgewood Apartments, a 264-unit community in Baton Rouge, and a $7.7 million loan for the Beau Terre Apartments, a 168-unit community in Alexandria, La., in central Louisiana. Monica Schroeder, assistant vice president in Beech Street’s Birmingham, Ala., office, originated both transactions, which are the borrowers’ first transactions with the company.
Both communities have an outdoor pool (Edgewood Apartments has two), a clubhouse, fitness center, laundry facilities and mail center. The borrower recently updated interior finishes and expanded the fitness center at the Beau Terre Apartments and installed new flooring, cabinets, countertop treatments, resurfaced bathroom appliances and repaired roofs and gutters at the Edgewood Apartments.
The borrowers have owned both properties since they were built, almost 28 years ago, and in both cases the properties had Fannie Mae loans maturing this month. Beech Street closed the deal 45 days after the application was accepted.
Even in the current climate, an owner’s track record helps ease the refi process. “In this case, we were greatly assisted by the borrowers’ track record of maintaining the apartments in excellent condition,” notes Schroeder. Also important were the owner’s experience developing multifamily properties, and the professionalism of its management company, she adds.