By IvyLee Rosario
Raintree Partners secured $218 million to refinance Encasa Apartments, a newly developed Class A community in Sunnyvale, Calif. Capital Once provided the 10-year, Fannie Mae fixed-rate loans that have 10 years of interest-only payments.
In addition, the property qualified for Green Globe certification, making it eligible for a lower all-in interest rate. This resulted in a transaction where Raintree could take advantage of permanent financing on a property that was 60 percent occupied and 75 percent leased at the time of loan closing with no additional credit enhancements or holdbacks.
Encasa was constructed in two phases on parcels separated by open green space. The community offers 465 studio, one-, two- and three-bedroom floorplans ranging from 571 to 1,700 square feet. Interior features include luxury flooring, custom tile baths and showers, stainless steel appliances, gourmet kitchens, smart home technology and private outdoor living rooms and patios. Each phase of the project has its own amenity package including:
- co-working facilities
- project workrooms
- fitness studios
- indoor/outdoor lounges with fireplaces
- off-lease bark parks
- one-acre park and trail system
- bicycle repair rooms
- private garages
- community garden
- swimming pools and spas
“Lease-up transactions require a lot of front end work, and both lender and borrower need to be ready for an array of moving parts,” said Greg Reed, senior vice president at Capital One Multifamily Finance. “To meet Raintree’s timeline and desired financing strategy, we were able to rate lock prior to completion and close at final occupancy without sacrificing loan proceeds.”
Reed, along with Senior Vice President Kristen Croxton originated the transactions. Earlier this year, Capital One provided a $27.1 million Fannie Mae fixed-rate loan to refinance 4700 Colonnade, a 215-unit apartment community in Birmingham, Ala.
Image courtesy of Capital One