AUSTIN, TX—Capital One Multifamily Finance has provided Freddie Mac fixed loans totaling $42.8 million for the acquisition of two class A apartment properties in Austin—the 5th Street Commons, a 150-unit property built in 2009, and the Pressler, a 168-unit property constructed the same year. The transaction was originated by Brian Sykes, Beech Street’s senior vice president of originations headquartered in the company’s Boston office. This is the latest of a series of transactions that the purchaser, Intercontinental Real Estate, has completed with Capital One Multifamily through its US Real Estate Investment Fund.
“In an effort to maximize the return for the investor, we worked with Freddie Mac to provide a very competitive seven-year, full-term interest-only loan,” Sykes says. In the process, Sykes and his team worked through several complex issues with the agency, including a master ground lease for the retail portion of the property. This enabled Capital One Multifamily to close the loan at the promised spread and proceeds levels.
“They really went to bat for us,” says Paul Nasser, the chief financial officer and chief operating officer at Intercontinental. “Capital One Multifamily demonstrated once again that is willing to do what it takes to represent its clients’ best interests. We were very appreciative.”
Both properties are in excellent condition. The units in 5th Street Commons feature private patios/balconies, city views, stainless steel appliances, walnut wood floors, built-in microwaves, washers/dryers, and walk-in closets. Those in the Pressler feature solar shades, in addition to private patios/balconies, city views, and stainless steel appliances. The properties share a number of upscale amenities, including a fitness center, e-lounge/business center, electric vehicle charging stations, concierge desk, and pool and sundeck. Both properties are located close to Austin’s central business district, making them among the most highly sought-after residential communities in the area.
The fixed-rate loans have a seven-year term with seven years interest and 6.5 years defeasance.
Capital One Bank’s Commercial Real Estate Group provides financing in markets nationwide, offering a comprehensive array of solutions for property owners and developers, including balance sheet and agency lending, financing, underwriting, and treasury management.