Tallahassee, Fla.—Holliday Fenoglio Fowler LP has placed a $17.8 million financing with Freddie Mac for Delaney Park at Southwood, a 248-unit Class A community in Tallahassee, Fla. The seven-year, fixed-rate loan was arranged on behalf of Epoch Properties Inc. through Freddie Mac’s Early Rate Lock Capital Markets Execution Program.
“Epoch took advantage of the current low interest rate environment and paid off their original construction loan with a new permanent loan that had terms only Freddie Mac could offer,” says Elliott Thorne, director at HFF. “They now have an attractive interest rate long-term financing that can be assumed by a new buyer if they choose to sell the asset in the future.”
Epoch, a firm that currently owns 3,913 units in 11 properties, completed the development in 2007 and has managed the property since then. The 12 residential buildings that comprise Delaney Parka are currently 95 percent leased. Residents enjoy a beach-style entry swimming pool, whirlpool spa, fitness center, indoor basketball court, steam sauna, private movie theater, billiards table and game area, conference room, and controlled access gates.
Black Castle to purchase 50-unit complex in Fresno
Fresno, Calif.—Black Castle Developments Inc. has executed a formal letter of intent to acquire a 50-unit apartment complex that is valued in excess of its $1 million purchase price. The group plans to acquire the property at a 50 percent discount to market value, and expects to enter escrow in 15 days.
“BCD has been diligently identifying and evaluating a portfolio of potential acquisitions,” says Jeff Holroyd, Black Castle Development’s chief executive officer. “Through our long-standing relationship with a network of brokers and REO asset managers, we have found a property that meets our strict criteria, including the generation of immediate cash flows and an above average return on investment. The Fresno marketplace is a prime example of a market that is excellent for acquiring real estate based on our cash flow models; we also feel there are several more large complexes available for acquisition.”
NorthMarq arranges $15M five-year interest-only mortgage
Fredericksburg, Va.–Greg Duvall, senior vice president and senior director of NorthMarq Capital’s Kansas City Regional office, arranged first mortgage financing for $15.017 million for Greens of Salem Run, a 200-unit multifamily property located at 5600 Salem Run Boulevard in Fredericksburg, Va.
Financing was based on a 10-year term and five years interest only, then a 30-year amortization schedule, and was arranged for the borrower by NorthMarq through its affiliate AmeriSphere Multifamily Finance LLC, a Fannie Mae DUS Lender.
Duvall says Greens of Salem Run is a Section 42 Low Income Housing Tax Credit property.