TODAY’S DEALS: PAC Grabs Newly Built Sarasota Asset
Preferred Apartment Communities grabs 237-units; CIT arranges financing for a Queens development; and Aries Capital obtains a refinance containing a $1.1 million cash out.
Sarasota, Fla.—Preferred Apartment Communities Inc. today announced plans to acquire a newly-built 237-unit apartment community in Sarasota, Fla. The company signed a purchase and sales contract, and completed its due diligence. The acquisition of Venue at Lakewood Ranch is expected to close in May 2015.
PAC is currently working with Freddie Mac on a $30.8 million first mortgage loan at approximately 65 percent of the underwritten value of the asset. That puts the sales price in the ballpark of $47.4 million, excluding acquisition and financing transaction costs. The new loan is expected to have a seven-year maturity, bearing interest at approximately 1.51 percent over the seven-year U.S. treasury security, though locked at 2.04 percent.
CIT arranges financing for Long Island City development
Long Island City, N.Y.—Renters continue to seek value in Queens as prices rise in Brooklyn and Manhattan. Developers have certainly taken notice. Today, CIT Group Inc. has announced that is has provided $44.8 million to a joint venture between The Treeline Cos., Mega Contracting and Glenmont Capital to develop 114 units, 133 parking spots and 20,000 square feet of retail in the Hunter’s Point area of Long Island City, N.Y.
Details on the new project are sparse. The Treeline Companies is a real estate investment firm founded in 1985. Mega Contracting is a real estate development and property management company focused in the New York City metropolitan area, and Glenmont Capital Management is a Manhattan-based private equity fund manager focused on value-add and opportunistic real estate investments.
Aries Capital arranges $8.79M refi with $1.1M in cashout
Chicago–Aries Capital announced that Eric Jones, senior vice president, from the firm’s Chicago office has completed an $8.79 million, non-recourse, Freddie Mac loan for the La Plaza Villas in Guadalupe, Calif.
The La Plaza Villa apartments are located at 736-754 Olivera Street in Guadalupe, a small town situated along the Pacific Coast Highway outside of Santa Maria, Calif. Constructed in 2006 and 2007, the 3.3-acre property features 74 multifamily apartment units. Aries Capital previously arranged a seven-year Fannie Mae loan in 2008 for Borrowers Brad Vernon and Damien Mavis of Olivera Street Apartments LLC.
Jones of Aries Capital said that the timing of the new loan worked out well, as the treasuries dropped significantly during underwriting.
The new 10-year, fixed-rate Freddie Mac loan was closed at a rate of 4.05 percent and features a 30-year amortization with a 70 percent loan-to-value ratio. Aries Capital also secured $1.125 million in cash out for the borrowers for future projects.