LOS ANGELES—TruAmerica Multifamily has secured a $168.8 million loan for the purchase of the Berkshire portfolio, a 1,514-unit portfolio with properties in Washington and Denver. In an earlier story, GlobeSt.com reported that TruAmerica purchased the portfolio in partnership with Allstate Life Insurance for $229 million.
CBRE‘s Brian Eisendrath, vice chairman of the capital markets debt and structured finance team, secured the funds of behalf of TruAmerica. According to Eisendrath, two of the three loans had a five-year, interest only full term at a rate of 3.25% and the third loan had a seven-year interest-only full term at a rate of 3.66%. He could not disclose the value of each individual loan. The transaction closed approximately 45 days after the lender was chosen.
One of the sponsors’ goals in was to maximize proceeds of the loans. “We spent a fair amount of time working with lenders to make sure they understood the transaction and the business plan so that we could deliver the proceeds that the sponsorship wanted,” Eisendrath tells GlobeSt.com.
Although securing multiple loans might typically be challenging, these transactions were straightforward and were completed without any major problems. “From a financing perspective, any time you are dealing with a portfolio, you have a lot of moving pieces,” says Eisendrath. “However, one of the things that made this transaction easier was the strength of the sponsor. Lenders were very impressed with TruAmerica, Guardian and Allstate. Those are three groups that lenders think very highly of, so there was a lot of interest from lenders wanting to place the debt on these assets.”