QUINCY, MA-GE Real Estate has announced the issuance of a $32-million fixed-rate refinancing for the Reserve at Marina Bay apartments here on behalf of Core Investments and O'Connell Investments. The six-story, 141-unit complex is eight miles south of Boston in the Marina Bay mixed-use development that includes condos, retail, restaurant and a large marina.

"GE Real Estate recognized the opportunity for this well-located asset and facilitated a fast, smooth transaction to meet our financing needs," says Core Investments chairman David Pogorelc. Affiliate 7 Seaport LLC paid Equity Residential $35 million for the building in February 2005, accommodated by a $27-million loan from Eastern Bank. The new ownership has since spent more than $3 million to enhance the property's appeal.

"It looks great," relays Eastdil Secured mortgage banker Frank Petz, who arranged the loan with GE after previously assisting 7 Seaport LLC in financing the initial purchase of the Reserve at Marina Bay. Besides the renovation and arrival of Marina Bay Management Services as property manager in 2007, Petz says the asset is benefiting from increased apartment occupancy levels as a result of the lingering residential debt crisis that has disrupted home sales. Occupancy has gone from 84.6% in September 2006 to 93.6%.

"We plan to continue taking advantage of the property's improved reputation and unique location to enhance value through greater efficiencies," says Peter O'Connell, who along with brothers Thomas and William also own Marina Bay Management Services and five nearby residential buildings. The trio created the master plan for Marina Bay itself, now considered among the South Shore's leading high-end living enclaves.

The pedigree of the Reserve at Marina Bay's ownership was important in granting the refinancing, says David Cohen, northeast regional director for GE Real Estate's North American Lending Division. "Both borrowers have a proven ability to perform well in the Boston-Quincy metropolitan area, which is now experiencing growth above the national average," says Cohen. The loan also reflects a desire to establish relationships with experienced property investors and managers in their own markets, Cohen indicates. GE's North American lending division offers financing for industrial, multifamily, office and retail, plus and niche real estate categories such as self-storage, student housing and vacation ownership.

Despite the debt market struggles, Petz says multifamily continues to garner interest among lenders, explaining many see the asset class as a "safe harbor" that only appears to be gaining strength. The GE transaction replaced 7 Seaport LLC's previous first mortgage and took out a piece of mezzanine debt as well.