Galman Group's total investment in the apartment community cameto roughly $50 million after closing costs, financing and thefuture value of the improvements, according to Capmark Finance VPBrian Campbell, in the firm's Horsham, PA, office, which originatedthe transaction. The transaction was supported by a $39 millionfixed-rate, permanent financing package of first-mortgage andmezzanine debt originated by Capmark through its Fannie Mae DUSprogram.

Specifically, it was the Community Investment Mezzanine Fund LP,a partnership between RCG Longview and Fannie Mae formed last year,which funded the mezzanine debt. The 78.5% LTV financing has aseven-year term with interest-only payments for the first fiveyears, followed by a 30-year amortization. Under the program,Campbell tells GlobeSt.com "if you are committing to spend money toimprove the property Fannie Mae will lend a larger amount under amore aggressive debt coverage ratio." In Galman's case it received20% more debt proceeds than it would have under a traditionalFannie program, he adds.

Situated on 16.4 acres, Whitney Apartments is located at 3000Society Dr. The multifamily property is comprised of 18three-story, garden-style buildings and three seven-story, mid-risebuildings. The 511 units total 623,364 sf and are 90% occupied.