TODAY’S DEALS: Beech Street Supplies a $38.2M Refinancing Loan
Beech Street Capital announced that it provided a $38.2 million Fannie Mae conventional loan; and Prudential Mortgage completed a $6.145 million FHA take-out mortgage that waived the three-year requirement.
Parkville, Md.—Beech Street Capital LLC announced that it provided a $38.2 million Fannie Mae conventional loan to refinance Ridge Gardens Apartments, a 603-unit multifamily community located in Parkville, Md. The transaction was originated by Adam Bieber, assistant vice president in Beech Street’s Bethesda, Md., office.
The experienced and motivated repeat borrower wanted to effectively capitalize on the low interest rate environment. Beech Street delivered, quickly turning around the transaction for an early-rate lock using Fannie Mae’s Early Rate Lock Program. “It was a seamless execution,” states Bieber. “The Beech Street team and the borrower complemented each other, working well together with equally strong responsiveness.” The borrower has owned the property since the 1970s and recently invested in capital expenditures in 2010 and 2011, with major improvements planned for the next 12 months.
The property is located northeast of Baltimore within the Baltimore MSA. It is well positioned off of I-695 with other secondary arteries providing convenient access to downtown Baltimore; Bethesda, Md.; Washington, D.C.; Philadelphia; and New York. Amenities include a pool, clubhouse/community/fitness center and a playground.
The fixed-rate loan has a 10-year term with partial interest-only.
Prudential Mortgage provides a $6.145M FHA takeout mortgage
Anaheim, Calif.—Prudential Mortgage Capital Company has closed a $6,145,60 million loan for Arbor View Apartments in Anaheim, Calif., through the firm’s FHA lending business, Prudential Huntoon Paige.
Arbor View Apartments is one of six designated affordable housing complexes within Orange County. Constructed in 2010, it contains 46 two-, four- and six-bedroom apartments. It is located in a heavily residential area about two miles west of Interstate 5, within minutes of Disneyland and Knott’s Berry Farm.
This eight-year fixed rate loan was used to pay off a construction loan. This is unique because HUD traditionally does not allow for loans to take-out of construction financing for new properties until the property has been operating for three years, which in this case would not have been until 2013.
The firm’s team worked with the local HUD office and was able to secure a waiver to the three-year rule. Martin Herz, a principal with Prudential Mortgage Capital Company, was the lead on the transaction.