TODAY'S DEALS: LYND Acquires 11 Distressed Communities in Auction

3 min read

LYND picks up 11 distressed communities at an auction; The Carlyle Group buys an independent living asset in Jacksonville, Fla.; and Walker & Dunlop provides a 35-year Section 223(a)(7) refinance loan at low interest.

Bluffs at Castle Rock

San Antonio, Texas—LYND is continuing to purchase distressed real estate across the country. The firm recently partnered with Florida Value Partners to a snap up a portfolio of 11 multifamily properties in a court-appointed receivership sale that was brokered by CBRE Group Inc. The original balance was $200 million, though the final purchase price was not disclosed.

“This pretty much followed the model of similar transactions we’ve made over the last couple of years,” says David Lynd, LYND’s president and COO. “Sellers recognize us as a serious buyer because we know the multifamily business very well, we’re well-capitalized and are real closers. We continue to seek opportunities that align with our investment strategy of acquiring value-add properties where we can effectively use our operating platform to create returns.”

The 11 properties, which were built between 1972 and 2000, total 3,241 units and are located in seven states: Florida, Georgia, South Carolina, Texas, Virginia, California and Colorado. The venture plans to perform a substantial rehab to the properties and hold them for several years.

LYND has purchased $975 million of unpaid principle balance on distressed multifamily and commercial real estate assets since 2010.

The Carlyle Group buys a seniors housing asset for $19M

Brighton Bay

Jacksonville, Fla.—The Carlyle Group has completed its purchase of Brighton Bay, a lender-owned, 185-unit independent living community located in southeastern Jacksonville. The group purchased the asset for $19 million from a subsidiary of Wells Fargo & Co., which was represented by Marcus & Millichap’s Charlotte, N.C., office.

“Occupancy at independent facilities will continue to strengthen as spillover demand filter from age-restricted and market-rate communities,” says Michael Pardoll, a senior vice president investments at Marcus & Millichap. “Brighton Bay is well positioned to take advantage of this trend and also to change with the times as the property was built to code for conversion to assisted living.”

Brighton Bay was built in 2010 on 8.2 acres and is located at 10061 Sweetwater Parkway, less than one mile from Florida State Road 9A, and 15 minutes from downtown Jacksonville. The asset offers studio and one- and two-bedroom suites on four floors.

Walker & Dunlop provides 35-year Section 223(a)(7) refi loan at low interest

Bremerton, Wash.Walker & Dunlop LLC recently provided a $9,602,400 loan under the U.S. Department of Housing and Urban Development’s Section 223(a)(7) program for Erlands Point Apartments, located in Bremerton, Wash.

The refinance loan was structured with a 35-year fully amortizing mortgage and underwritten with a 1.178 Debt Service Coverage ratio. Walker & Dunlop structured the refinance to enable the borrower, EP Holdings LLC, to lock in a low 35-year fixed rate.

Erlands Point Apartments is a 148-unit multifamily residential complex constructed in 1992. The property is situated on over seven acres and offers one-, two-, and three-bedroom models in 12 buildings. Community amenities include an in-ground pool, laundry facility, two playgrounds, a gated courtyard, computer center, and onsite security. In addition, Erlands Point offers residents access to a clubhouse containing an indoor spa, sauna, tanning bed, fitness center, and a lounge area with a kitchenette.

Walker & Dunlop Vice President, FHA Finance, Carolyn McMullen led the Walker & Dunlop team.

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