TODAY’S DEALS: Beech Street Refinances NYC Portfolio
Beech Street Capital closes a $49.5 million loan for a NYC portfolio; Cohen Financial secures $34 million for a Colorado development; and Centerline Capital provides an $11.4 million refinance loan for a Maryland property.
New York—Beech Street Capital has closed $49.5 million in Fannie Mae conventional loans to refinance a four-property portfolio consisting of three high-rise buildings located in Manhattan and one mid-rise building in Brooklyn. The four assets total 295 units.
The transaction, originated by Carol Shelby of Meridian Capital Group, was financed by Beech Street Capital as part of its correspondent relationship. The four buildings have been owned within the borrower’s family for over 25 years. All properties are 100 percent occupied. The Manhattan buildings are located in the Upper West Side, while the Brooklyn property is located off of Ocean Parkway.
Cohen Financial secures $34M for Colorado development
Aurora, Colo.—Cohen Financial has secured $34 million in equity and debt financing on behalf of Post Investment Group. The money is related to Post’s Gardens on Havana project located in Aurora. The Class A rental community will feature 227 units and a luxury amenity package.
“This initiative is a testament to the many institutional equity investors who have broadened their geographic horizons to include secondary markets that enjoy strong underlying fundamentals and a vibrant growing economy as an alternative to the frenzied competition for high density product in primary urban in-fill locations,” says John Carrick, managing director in the Los Angeles office of Cohen Financial’s Equity Practice Group. “The fact is a majority of renters across our country reside in three story walk-up, wood frame structures in suburban locations and equity investors should not overlook the material aggregate income that results from such residency.”
Centerline provides $11.4M refinance for Maryland property
Riverdale, Md.—Centerline Capital Group has provided an $11.4 million Fannie Mae DUS loan to refinance Auburn Manor, a multifamily property in Riverdale, Md. Riverdale is located in Prince Georges County, Md., which is just east of Washington, D.C.
Auburn Manor is a 261-unit multi-family property that is comprised of 11 brick garden-style buildings and a pool building. Located at 6821 Riverdale Road, the facility was built in 1963 and was substantially renovated after a 1998 purchase that involved tax exempt bonds and 4 percent tax credits. The property residents are limited to those earning no more than 60 percent of the area median income as adjusted for family size.
The new loan paid off existing indebtedness of $8.3 million and will fund repair and replacement reserve escrows of $600,000. The loan term is 15 years, with a 30-year amortization schedule. The borrower is a Maryland Limited Partnership, controlled by AHD, Inc.
“The new loan we put into place carries a 15-year fixed rate of 4.55 percent,” notes Bryan Cullen, director at Centerline Capital Group. “It was structured with a longer term because it fit into the expiration date of the compliance period. In addition, the cash out allowed for some capital improvements and a return of equity to the investors.”
“Our team really enjoyed partnering with the Centerline team to quickly complete this transaction,” says Bruce Levin with MAC Realty Advisors LLC. “The financing was time sensitive due to a bond repayment and the team was able to meet the month-end deadline successfully.”
Auburn Manor is located in an established neighborhood that has a mix of residential, industrial, commercial and employment centers nearby. The property also benefits from very good regional highway access, as well as close proximity to major commercial thoroughfares in the area. In addition, the neighborhood is well served by public transportation.
“Prince Georges County is a strong metropolitan market and the borrower is a very experienced multifamily developer, owner and manager with more than 20 years of multifamily design, development, ownership, and management experience,” adds Cullen. “These factors, combined with the deal’s solid real estate fundamentals, made this a good deal for Centerline.”
Property amenities include a leasing office with business center, small laundry centers in each building, a community pool, two children’s playgrounds and picnic areas. Parking is provided via 442 open parking spaces.
The Mortgage Banking Group at Centerline provides mortgage financing for conventional multifamily properties throughout the United States. Centerline is a Fannie Mae DUS lender, Freddie Mac seller-servicer, FHA-approved mortgage provider, bridge and CMBS lender and source for other forms of alternative capital.