NEW YORK CITY-Beech Street Capital, based in Bethesda, MD, haspaired up with locally based Meridian Capital on a $175-millionFannie Mae DUS loan to refinance a New York City multifamilyproperty. Beech Street also originated a $100-million loan torefinance a portion of a Daly City, CA apartment complex.

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The borrowers on both the East and West coasts asked to not beidentified, Beech Street and Meridian tell GlobeSt.com. The NewYork City asset is a 490-unit high-rise, while the Daly Citycomplex is a mix of mid-rise and garden-style apartments andincludes a total of 2,983 units; the Beech Street refi covers threeloans on 1,049 of those units.

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Common to both refis was the need for speed, and Beech StreetCEO Grace Huebscher tells GlobeSt.com each was accomplished inabout 30 days. In one case, the borrower’s existing loan wasmaturing, while in the other, it was a desire to deal with some“year-end issues.”

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At the same time, “rates were rising, and in both cases therewere a sense of urgency to lock in rates as quickly as possible,”Huebscher says. The fixed-rate loan on the New York property has aterm of 10 years, with two years interest-only, and a 30-yearamortization thereafter. On the Daly City refi, it’s a 10-year termand a 10-year interest-only option, with 9.5 years of yieldmaintenance and a 30-year amortization schedule.

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How fast those rates will continue to go up is difficult topredict, Huebscher says. She adds, however, “We’ve seen a littlebit of a run-up here, and you might see an adjustment backward.You’re still going to see very attractive coupons,” which have beenaveraging in the 5% range of late.

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Huebscher cites some of the reasons these nine-figure refis wereable to get done. “Both were obviously in superb markets, with goodborrowers,” she says. “They’re large properties, with veryattractive credit” as well as strong fundamentals.

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Meridian originated the $175-million New York transaction, whichwas financed by Beech Street as part of its correspondentrelationship with Meridian. The $100-million Daly City refi wasoriginated by Beech Street EVP David Levine.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.