TODAY’S DEALS: Chestnut Hill Acquires two Mass. Assets
Chestnut Hill Realty buys 581 units; Seagate Colorado Partners buys a 288-unit community in Colorado Springs; and Centerline Capital provides a $28.9 million Fannie Mae loan to refinance a luxury active-adult apartment property.
Framingham, Mass.—Chestnut Hill Realty has purchased two apartments communities with a combined 581 units in Framingham, Mass., for $84.5 million. The firm will re-brand and reintroduce Grandview Terrace and Grandview Village as Water View Apartments in Framingham. People’s United Bank provided $37 million in financing, while Chestnut Hill Realty assumed an existing $27 million Fannie Mae loan.
“The location of the properties is a major positive,” says Steve Gladstone, CHR’s director of acquisitions. “In addition to the accessibility to major roads, the area offers strong demographics, a large and growing job market, and an abundance of local entertainment, shopping and restaurant amenities. The Metro West is one of the area’s strongest submarkets. With high barriers to entry in Framingham and the surrounding communities, we are anticipating significant apartment demand in this area for the foreseeable future.”
Both properties will receive face-lifts to enhance the entrances, signage, common areas, hallways, landscaping and amenities.
ARA brokers 288-unit sale in ColoradoDove Tree
Colorado Springs, Co.—ARA has brokered the sale of the 288-unit Dove Tree apartment community located in Colorado Springs. The asset was sold by Blue Vista Capital Partners and acquired by Seagate Colorado Partners, which shelled out $18.1 million.
“Dove Tree represented an opportunity for strong day one returns in addition to an excellent value-add component,” says Kevin McKenna, vice president at ARA. “The property is well maintained with high occupancy and offers the opportunity to raise rents by enhancing the common area amenities and implementing a unit upgrade program. The buyer has a proven track record of doing just that throughout the metro area.”
Built in 1984, the asset consists of two-bedroom units that average 970 square feet. The community was 93 percent occupied at closing.
Centerline provides $28.9M Fannie Mae loan to refinance luxury active-adult apartments
New York—Centerline Capital Group announced it provided a $28.9 million Fannie Mae DUS loan to refinance an apartment facility located in Coram (Long Island), N.Y.
The property is a luxury, over 55 market-rate rental community that includes 22 one- and two-story, luxury townhouse apartment buildings, plus a clubhouse building. Constructed in 2005, the property contains a total of 173 apartment units, all of which are two-bedrooms that cater to adult living, and have their own individual entrances and washer and dryer units. A good portion of the apartments include direct access garages with automatic openers and full-length driveways. The property also includes a detached garage building with parking for 20 cars.
The borrower is a large, Long Island-based multifamily owner, who elected to move forward on a 20-year loan term, with a 30-year amortization schedule. Given the current low interest rate environment, the borrower was able to lock in a rate of 4.22 percent. The Fannie Mae DUS program also allows borrowers the option to obtain supplemental financing during the term of the loan.
“The borrower had the opportunity to pay off their existing market rate loan without a prepayment penalty, but needed to do so in a very short period of time,” commented George G. Haase, director at Centerline Capital Group. “Centerline was able to quickly structure a Fannie Mae loan in the early rate lock program and completed the loan—from receipt to signed application—in a swift six weeks.”
“The Long Island market enjoys one of the highest occupancies in the country, and this property was approximately 98 percent occupied at the time the loan was closed,” adds Haase. “This was a solid deal for Centerline. We were pleased at the efficiency with which this deal came together and that we were able to meet the needs of the borrower.”
The community is specially zoned as a planned retirement community, and has a deed restriction requiring residents to be 55 years or older.
Centerline is a Fannie Mae DUS lender, Freddie Mac seller-servicer, FHA-approved mortgage provider and source for other forms of debt and equity.