St. Petersburg, Fla.—HFF has arranged $25.2 million in financing for Elan Gateway, a newly built, 240-unit luxury community in St. Petersburg. The borrowers, Thackery Partners and Greystar, will use the seven-year, 3.94 percent, fixed-rate loan as a forward take-out for construction financing. A life company provided the loan, which was rate-locked approximately nine months prior to stabilization.
Built in 2013, Elan Gateway offers one- and two-bedroom units situated in 10 buildings. Amenities include a wellness center, two swimming pools, a business center, coffee bar, barbecue areas, billiards room and a dog run. The property was 94 percent leased at the time of the transaction. The HFF debt placement team representing the borrower was led by Senior Managing Director Kevin MacKenzie and Senior Real Estate Analyst Andrew Tighe.
“The sponsorship was able to think ahead strategically and go to market in parallel with starting the leasing process,” MacKenzie says. “Following an aggressive marketing effort, the result was a loan that fit within the business plan providing for debt and equity take-out, as well as maintaining enough flexibility to exit in the desired time-frame.”
Philly high-rise trades for $47.3M
Philadelphia—Resource Real Estate (RRE) has completed its disposition of Charter Court at East Falls, a 502-unit high-rise in Philadelphia. The property carried a sales price of $47.3 million, or $94,124 per unit. Treetop Development picked up the asset. Marcus & Millichap’s Clark Talone, Andrew Townsend and Ridge MacLaren represented RRE and advised Treetop in the sale.
“The Charter Court sale typifies the strength of the multifamily market in Philadelphia today,” says MacLaren. “Buyers from North Jersey recognized the ability to grow rents significantly in the hot East Falls neighborhood.”
The property is located in a quiet, tree-lined setting at 5450 Wissahickon Ave. in Philadelphia, two blocks from the Queen Lane Southeastern Pennsylvania Transportation Authority (SEPTA) station, which provides easy access to Center City.
“Treetop took advantage of the opportunity to acquire immediate scale in a thriving location,” adds Talone. “The property’s strong current of occupancy will generate cash flow while Treetop embarks on a $7 million renovation program.”
That should get the property into tip top shape considering RRE already invested $5 million in a renovation program that upgraded amenities, common areas, hallways and many unit interiors. The current amenity package includes pool with cabanas, a business center, fitness center, pet spa and door attendant.
Beech Street closes $34M term loan to refinance property
King of Prussia, Pa.—Beech Street Capital, a Capital One company, announced today that it has provided a $34 million 10- year loan to refinance Valley Forge Towers North, a 242 unit, 15-story high-rise apartment building in King of Prussia, Pa.
The transaction was originated by Brian Sykes, senior vice president working from Beech Street’s Boston office. The client was the Galman Group, which owns and manages more than 7,000 quality apartment communities and condominiums.
The transaction illustrates the additional resources that Beech Street’s originators can bring to bear for its lenders, thanks to its recent merger with Capital One. “Through Capital One’s derivatives desk, we were able to offer the borrowers a very competitive 10-year fixed rate,” Sykes says. “Galman has been a client of ours for several years, and we’re excited to see how our teamwork with Capital One can continue to serve their needs in the future.”
Galman was pleased with the results. “Beech Street supplied us with a very competitive financing rate that was specific to our needs,” says Arnold Galman, founder of the Galman Group.
The property contains one-, two- and three-bedroom units ranging in size from 1,079 square feet to over 1,600 square feet. The property also includes 11,000 square feet of office space, 19,000 square feet of retail, 8,000 square feet of commercial storage and 178 garage parking spaces.
The fixed-rate loan has a 10-year term with repayment based on a 30 year mortgage amortization.