PPA Obtains $40M Refi on Three Multifamily Properties

SAN ANTONIO-Five years after acquiring a 942-unit multifamily property portfolio and accompanying assumable mortgage, owner Partnered Property Acquisitions Group LLC  obtained a $39.2 million loan to refinance the collection. Beech Street Capital LLC helped out, working with Freddie Mac to execute three 10-year, fixed-rate loans on the 466-unit Sunset Canyon Apartments; the 244-unit Kenton Apartments and the 232-unit Peppermill.

According to Beech Street vice president Brian Sykes, the liaison between Freddie Mac and the borrower, obtaining the loans was a challenge, not the least of which was maturity timing, foundation issues and working with different equity partners. The loan was used to pay off an existing blanket for the first mortgage; PPA also wanted the proceeds to cover the mezzanine debt and close the loan without funds coming out of pocket.