By Anuradha Kher, Online News Editor, MHN and Barbra Murray, Contributing Editor, CPNAtlanta, Dallas, Charlotte, N.C.–Post Properties Inc. has closed six, cross-collateralized mortgage loans totaling $185 million with Wachovia Multifamily Capital Inc. The loans are secured by mortgages on six Post communities, including Post Parkside and Post Spring located in Atlanta; Post Legacy and Post Worthington located in Dallas; and Post Ballantyne and Post Gateway Place located in Charlotte, N.C. The mortgage loans have an aggregate principal amount of approximately $184.7 million, require fixed interest-only payments at 6.09 percent and mature in six years. Post expects to use $100 million of the net proceeds from these secured financings to fully pay down the current outstanding balance on its $600 million unsecured revolving line of credit and expects to use the remaining net proceeds for general corporate purposes.Kennedy Wilson Multifamily, Guardian Life Insurance Co. Close $84M for 324-Unit PropertySan Jose, Calif.–Beverly Hills-headquartered Kennedy Wilson Multifamily Management Group and New York City-based Guardian Life Insurance Co. of America have shelled out $84 million for Avalon at Blossom Hill, a 324-unit apartment property in San Jose, Calif.Teaming up for the first time, the companies, backed by senior debt supplied by Freddie Mac, took the multifamily asset off the hands of its developer AvalonBay Communities, and will rename the garden-style complex (pictured) Saybrook Pointe. Real estate services firm CB Richard Ellis Inc. had marketed the property free and clear of debt with a $91 million price tag.For KW Multifamily, the transaction dovetails with the company’s objective of purchasing and repositioning under-valued apartment properties in California, as well as the Pacific Northwest region.San Jose has one of the strongest apartment markets in the country with an average vacancy rate of 3.7 percent, according to a report by Marcus & Millichap Real Estate Investment Services. Despite a decrease in job growth and the country’s obvious economic issues, the future still looks rosy for the city, as the lack of affordable homes in the high-tech haven of Silicon Valley will continue to shore up demand. Investors remain attracted to the market’s desirable fundamentals, but the number of transactions has decreased due to the credit crisis and the widening gap between asking prices and offering prices, which could account for the $7 million discount KW Multifamily and Guardian got on the asking price for their newly acquired asset.Meridian Capital Closes Over $4M in Financing for Three PropetiesLos Angeles–Meridian Capital Group recently arranged financing in the amount of $4,750,000 for three multifamily properties comprising 62 residential units and located on Delongpre Ave in Los Angeles. The properties had undergone substantial upgrading and renovations and were beginning to enter the final stages of lease-up as the deal came to market. The full requested loan proceeds were locked within a week of application for a five-year term providing interest only payments for the first two years with an interest rate in the mid-5 percent range.
TODAY’S DEALS: Post Properties Closes $185M Portfolio Financing, and Other Transactions
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