MEMPHIS—The new owners of Pheasant Run, a 168-unit garden-style multifamily development in Hendersonville, TN, have secured a $7 million mid-rise acquisition loan. Kristopher Wood and John Banas, both directors in Marcus & Millichap Capital Corp.‘s (MMCC) Philadelphia office, arranged the loan.
“The borrower wanted to purchase and reposition an agency foreclosure property that was part of an underperforming portfolio,” says Wood. “Getting a bridge to agency loan in place was challenging but MMCC sourced a flexible lender that was able to work within a tight timeline and meet our client’s goals.”
The two-year adjustable rate loan is interest only at 5.5% with a loan-to-cost of 80 percent. Banas explains, “Many apartment operators are capitalizing on underperforming assets that present an opportunity for a value-add play in the multifamily arena.”
Built in 1973, Pheasant Run is about one half mile from the Henderson Bypass, offering multifamily residents quick access to Interstate 65 and Nashville. The Rivergate Mall, Old Hickory Lake and Hendersonville City Parks are among the local amenities.