Sovereign Property Management Secures $92M for Delaware Portfolio

Village of Canterbury. Image courtesy of Meridian Capital Group

Sovereign Property Management has closed on $92 million in refinancing for its four-property multifamily portfolio across three cities in Delaware.

The Newport, Del.-based owner, developer and operator secured three 10-year Freddie Mac loans through Capital One Multifamily Finance, with 2.9 percent rates and full-term, interest-only payments.

The 902-unit portfolio consists of four apartment communities—Woodmill Apartments, Baytree Apartment Homes, Village of Canterbury and Arundel Apartments—in the cities of Dover, Newark and Wilmington, Del. All four properties are garden-style, low-rise communities with unit mixes including one-, two- and three-bedroom layouts and amenities including in-unit washers and dryers, private patios and balconies, swimming pools, fitness centers and resident lounges.

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A Meridian Capital Group team of Senior Managing Director Israel Schubert and Vice President Josh Munk negotiated the transaction, while financing was led by Vice President Marc Soto. In prepared remarks, Munk said the New York-based firm was able to negotiate an attractive refinance for Sovereign, despite obstacles due to the COVID-19 pandemic.

Meridian Capital Group recently arranged financing for Iris Holdings Group’s purchase of two rent-stabilized apartment communities totaling 112 units in the Staten Island borough of New York City.

Despite other real estate sectors feeling impacts from COVID-19-related economic upheaval, the multifamily sector has been relatively stable, with investors remaining somewhat active. Many have relied on financing sources like Fannie Mae and Freddie Mac, Pathfinder Partners Senior Managing Director & Co-Founder Mitch Siegler recently told Multi-Housing News.

“Multifamily has been one of the most resilient real estate sectors and financing remains available, though underwriting has tightened,” said Siegler.