TODAY’S DEALS: Landmark Buys 795 Units

Landmark Apartment Trust acquires three communities; Beech Street closes a $5.7 million refi on a Chicago asset; and Johnson Capital arranges a $21.32 million loan for Seattle property.

Charlotte, N.C.—Landmark Apartment Trust of America continues to grow. The firm announced this week that it picked up three garden-style assets in Charlotte, N.C., for a combined purchase price of approximately $83 million. The properties—Mallard Creek, Abbington Place and Ashley Court—contain 795 units that are 93 percent occupied.

“The acquisition of these three high-quality properties significantly expands our operations in Charlotte and aligns with our disciplined investment strategy of acquiring attractive assets at a discount to replacement cost,” says Jay Olander, chief executive officer at Landmark Apartment Trust of America. “We believe these assets offer strong unrealized cash flow potential that we plan to unlock by implementing our proven operating platform and renovation and repositioning strategy.”

Formerly known as Apartment REIT, the company evolved into Landmark in the summer of 2012 through a complex deal with a number of investors. The end result was a recapitalization, a $485 million/6,100-unit apartment portfolio acquisition and a name change to Landmark Apartment Trust of America.

For more information on Landmark, be sure to check out MHN‘s interview with CEO Jay Olander.

Beech Street closes $5.7M refi for Chicago apartments 

Chicago—Beech Street Capital has closed a $5.7 million Fannie Mae conventional loan to refinance West Belle Plaine Apartments, a 145-unit asset located in Chicago. The 1927-built property underwent a renovation program between 2009 and 2011. Over 83 percent of the units were fully upgraded, and four new laundry rooms were built.

The borrower had a loan set to mature in 2014, but it opted to pay the prepayment penalty to lock in a lower interest rate. The fixed-rate loan has a 10-year term, 9.5 years yield maintenance, and a 30-year amortizing schedule.

Johnson Capital arranges a $21.32 million loan for Seattle property

Seattle–Johnson Capital announced that Amos Smith and Ryan Chapman of the firm’s Irvine, Calif. office have arranged a $21.32 million loan secured by a mixed-use project in Seattle containing 98 apartment units and 5,000 square feet of ground floor commercial space.

The owner of the property is a substantial, Seattle-based developer who built the complex in 2001. He is a long-term client of Smith and Chapman for whom they have arranged several debt placements.

The Shelby Apartments is in the Belltown section of Seattle close to the central business district, Interstate 5 and the Seattle-Bainbridge/Seattle-Bremerton Ferry terminal. The Shelby contains a mix of studios and one-and two-bedroom units and it offers residents many amenities including a fitness center and concierge service.

The 10-year, non-recourse loan was provided by Fannie Mae.

Commenting on the transaction, Amos Smith said, “This fantastic property coupled with the experienced sponsor attracted significant interest from Agency lenders and life insurance companies. In the end, FNMA provided the most attractive financing option for the borrower.”

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