TODAY’S DEALS: Milestone Completes $28M Apartment Acquisition in Atlanta
Toronto-based Milestone buys in Atlanta; NorthMarq completes a $27M refinancing and helps a borrower avert prepayment penalty; and Marcus & Millichap, IPA handle a Phoenix apartment sale.
Atlanta—Toronto-based multifamily investor Milestone Apartment REIT has completed its acquisition of Harbor Creek, a 316-unit community located in the Canton submarket of Atlanta. The asset was picked up for $28 million.
The acquisition was funded using proceeds from a previously announced equity bought deal and the refinancing of a $228.6 million mortgage debt facility. The REIT is in the process of placing a seven-year, interest-only, fixed-term mortgage of approximately $15.7 million with an interest rate of 3.55 percent on Harbor Creek.
Harbor Creek was built in two phases in 2003 and 2007, and is currently 98 percent occupied. Milestone’s apartment portfolio now consists of 55 garden-style properties comprising 17,964 units in 11 major markets through the Southeast and Southwest United States.
NorthMarq completes $27M refinancing, averts prepayment penalty for borrower
Seattle—Ron Peterson, senior vice president/managing director of NorthMarq Capital’s Seattle-based regional office, arranged a refinance for $27 million for 12 Central Apartments, a 204-unit garden style conventional market multifamily property located at 10290 NE 12th St, Bellevue, Wash.
Financing for the transaction was structured with a 10-year term and 30-year amortization schedule and was arranged for the borrower by NorthMarq through its seller/servicer relationship with Freddie Mac.
Freddie Mac refinanced one of their existing loans for a property with a 50-yard line location in Bellevue where the LTV was very low. Freddie locked the rate early and funded five months later so the borrower did not have a prepayment penalty.
Phoenix property trades for $10.1M
Phoenix—A 236-unit community in Phoenix known as Tuscany Apartments has traded hands for $10.1 million thanks to a tag-team brokerage effort between Marcus & Millichap and the company’s multifamily specialists at Institutional Property Advisors.
Cliff Davis, a Marcus & Millichap vice president investments, and Steve Gebing, a senior director with IPA, represented both the seller, Howe Group LLC, and advised the buyer, The Lodge Complex Tulsa LLC.
“Built in 1981 in an established north Phoenix neighborhood, Tuscany Pointe is well positioned for revenue enhancement through strategic interior and exterior renovations,” says Davis.
Developed by Lincoln Property Co., the property is located on 8.3 acres at 14830 North Black Canyon Highway in Phoenix between the North Interstate 17/Deer Valley employment corridor, an area encompassing 17.5 million square feet of retail, office, industrial and flex space and the Metrocenter Mall.
Community amenities include two swimming pools, a fitness center with cardio- and weight-training equipment, a sport court, barbecue grilling stations, a shaded playground, two laundry facilities and lighted, covered parking.