TODAY’S DEALS: Berkeley Point Lands $28.5M for Washington Apartment Refinance
Berkeley Point Capital refinances a community in Lakewood, Wash.; Cornerstone closes its third affordable housing fund; and IPA brokers a 220-unit sale in Dallas/Fort Worth.
Lakewood, Wash.—Berkeley Point Capital has provided $28.5 million to refinance Echelon Apartments, a Class A, 254-unit community in Lakewood, Wash. Financing was structured under the FHA 223(a)(7) program, under which Berkeley Point was able to reduce the borrowers interest rate from 6.64 percent to 4.30 percent while restoring the loan proceeds to the original loan amount and amortizing the loan over a 37-year term. The 2009-built asset is owned by Lakewood Project, a repeat Berkeley Point Capital client.
“From start to finish, from top to bottom, the Berkeley Point team did an incredible job being proactive and pulling the trigger when rates were low,” says Brett Jacobsen, principal at Lakewood Project.
Echelon Apartments consists of two- and three-story buildings with one-, two- and three-bedroom units. Amenities include a fitness center, tanning beds, heated pool and spa, playgrounds, indoor basketball court, business center and a walking trail.
Cornerstone closes third affordable housing fund
Hartford, Conn.—Cornerstone Real Estate Advisers has closed a new $106 million equity fund dedicated to preserving affordable housing. Known as the Cornerstone-NAHT Enhanced Preservation Fund III LLC (Fund III) and co-sponsored by the National Affordable Housing Trust (NAHT), the equity is earmarked for the rehabilitation of 17 multifamily communities for lower-income, mostly elderly, renters. Fund III is the third affordable housing equity fund Cornerstone has launched with NAHT.
“With our range of expertise and capabilities—including equity investing, permanent lending, and tax credit syndication—we’re able to bring a high level of creativity to the affordable housing marketplace,” says Don Phelan, vice president in Cornerstone’s Affordable Housing Group. “While generating a return for our investors is always the primary focus, our investments in Affordable Housing also serve a greater public good, which is something we value highly at Cornerstone.”
IPA arranges a 220-unit apartment sale in Dallas/Fort Worth
Mid-Cities, Texas—IPA has arranged the sale of The Creek on Park Place, a 220-unit community in the Mid-Cities area between Dallas and Fort Worth. IPA executive director Will Balthrope, IPA associate director Drew Kile, Marcus & Millichap vice president investments Nick Fluellen and associate Bard Hoover advised the seller. The buyer was a 1031-exchange investor from the West Coast that sold an apartment property in California with Marcus & Millichap and reinvested the proceeds in the Texas market.
“More than $2.1 million in renovations and improvements during the last 24 months have transformed The Creek on Park Place into one of the premier properties in the submarket,” says Balthrope. “Additional opportunities to add value exist through the implementation of a water conservation program and the continuation of the unit upgrades.”
Built in 1980, the Creek on Park Place is situated on nearly 12 acres featuring mature trees. Community amenities include a swimming pool with a custom outdoor pool kitchen, a dog park and playground, fitness center, business center, laundry facility and outdoor seating areas with barbecue grills.