TODAY’S DEALS: Rambleside Acquires 586-Unit Asset in Charlotte

ARA brokers the sale of a 586-unit asset in Charlotte; Boston Capital closes a tax credit fund encompassing 22 affordable properties; and Aries Capital helps an owner secure financing for a fractured condo/apartment community.

Autumn Park

Charlotte, N.C.—Rambleside Real Estate Capital has acquired Autumn Park, a 586-unit community in Charlotte, N.C., for an undisclosed price. ARA brokered the sale of the asset, which was 98 percent occupied at the time of sale.

“Autumn Park has been institutionally owned and maintained since development with an ownership legacy more typically associated with infill assets located in the Gateway MSAs,” says ARA’s Dean Smith. “This institutional stewardship is reflected in the high quality of the physical plant and thus positioned Autumn Park to compete favorably with newer multifamily communities in the market.”

Built in 1997 and 1999, Autumn Park is directly across the street from Wells Fargo’s Customer Information Center, AON Hewitt, IBM, Siemens and AXA Equitable’s new Charlotte installation.

Boston Capital closes $150M tax credit fund

Boston—Boston Capital has closed Boston Capital Tax Credit Fund XXXVI, a nationally diversified portfolio of 22 affordable properties in 15 states. The properties acquired by the fund add an additional 2,481 units to Boston Capital’s holdings.

“Fund XXXVI, due to its high-quality assets and attractive yield, drew very strong investor interest,” says Jack Manning, president and CEO of Boston Capital. “Boston Capital strives to achieve the best results in the marketplace by providing superior investment opportunities and teaming with the finest developer partners, producing quality affordable housing.”

The fund includes nine senior housing developments and 13 properties for families in 15 states (Ark., Ky., La., Mass., Md., Maine, Mo., N.C., N.Y., Tenn., Utah, Va., Wisc., and W.V.). Closing of the fund is expected to create more than 1,220 local jobs. Boston Capital recently launched Corporate Fund XXXVII, a $120 million equity fund that is expected to close in March 2013.

Aries Capital helps owner secure financing for fractured condo/apartment community

Naperville, Ill.—Aries Capital announced that Senior Vice President Jeff Bucaro, from the firm’s Chicago office, has completed an $8.8 million first mortgage on behalf of Marquette Real Estate Investments for a fractured ownership in a multifamily property in Naperville, Ill.

The Ponds of Naperville was originally purchased as an apartment community by Marquette in 2000. The highly regarded owner/operator upgraded the property and units and ran the property as an apartment community for about seven years, and then began to sell the apartments as condominiums. When the housing bubble burst in 2008, 111 units scattered across the 216-unit property remained unsold and Marquette Management chose to rent the remaining converted condos. When the market improved, despite Marquette Management’s pristine reputation in the industry and consistently high-performing property portfolio, the firm was unable to find a lender who was comfortable with this type of collateral. Left with only high-interest rate options, Marquette sought Aries Capital’s assistance.

“In spite of the fact that every lender in the country is seeking high-quality multifamily loans, there is almost no appetite from conventional lenders for this type of collateral structure,” Bucaro says. “We were able to bring a portfolio lender to the table and got them very comfortable with the high-quality sponsorship, consistent cash flows, and the exit for the loan.”

Aries successfully secured a lender who extended $8.8 Million at 75 percent LTV as the first mortgage on the non-contiguous units, and also allowed a recorded second mortgage at 80 percent LTV, along with additional mezzanine debt beyond the 80 percent. The deal structure included the flexibility of no prepayment penalty, ensuring that the borrower may sell and release individual units or prepay or refinance the entire loan, without penalty. The first mortgage loan features a 4.25 percent rate, a four-year term with extension options and a 30-year amortization.

“Aries Capital is a very talented mortgage banking group, with a reputation for finding solutions to challenging financing situations, and the creative know-how to get things done,” said Nick Ryan, the managing partner of Marquette Companies.

The Ponds of Naperville is located at the corner of 75th Street and Modaff Road in Naperville, Ill. The property is minutes from the expressways as well as downtown Naperville. Units feature one- and two-bedroom options, and amenities include a swimming pool, fitness center and 24-hour emergency maintenance. Marquette Management is known throughout Illinois, Texas, Kansas, Michigan and Colorado for its pet friendly, boutique apartments and its commitment to customer service through its WE C.A.T.E.R., Community  Life and Smart Rent systems. Marquette Management is a highly regarded multifamily owner/operator headquartered in the Chicago area which operates approximately 10,000 apartment units.

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