Refinancings Abound
Older asset in a secondary market? Financing may be a challenge, but there's money available if your property and operations are in good shape, the submarket is doing well, and you have a solid sponsor, according toBerkadia SVP Stewart Campbell. He and NY-based colleague Tom Toland have arranged a $6.6M refi through Freddie Mac for the 184-unit, Class-BRiverwalk Apartmentsin Conroe. The 10-year, fixed-rate loan (at 70% LTV) will go toward capital improvements and equity for future acquisitions; it also lowered the borrower's interest rate from 6% to 3.87%.Bonus points forlong-term owners: This borrower's owned the property for over 10 years and has a good history in the Conroe area.
We also caught up with Berkadia's local team, SVPs Cutt Ableson and Jon Gilfillan, who've arranged a $10M refi through Fannie Mae for the Augusta Meadows Apartments in Tomball. The process took almost 18 months, they say, as the Class-A, 264-unit property was built in '11 and was leasing up more slowly than anticipated. In other Berkadia news, the firm acquired Hendricks & Partners to form Hendricks-Berkadia, Apartment Real Estate Advisors, bringing investment sales and research into its fold.
