The multiple-loan transaction advances an investment strategy that leverages developments that the group brought out of the ground fully paid. Seven properties are located in Houston and 10 in Phoenix, Donamae Clinebell of the Tampa office of L.J. Melody & Co. tells GlobeSt.com. All are high-end properties ranging in age from one to 10 years.

Kapital Consults is comprised of Dreilander Funds, closed-end investment funds for German investors. Clinebell says 11 funds effectively own the portfolio.

Clinebell categorizes the transaction as extremely complicated transaction because its owners' holdings involved German and US commercial real estate plus liquid securities held by a Swiss money manager. She says the debt placement is an investment strategy that comes with a commitment for continued ownership by Kapital Consults. "German investors have a different approach to debt," she says.

Clinebell and L.J. Melody originated the loan and subsequently sold it to Freddie Mac. Each property had a separate 10-year, fixed-rate loan amortized over 30 years. Loan sizes ranged from $5 million to $27 million. On average loans were taken out for 60% to 65% of the property value, says Clinebell. She estimates the total portfolio value at nearly $350 million.