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

The borrowers on both the East and West coasts asked to not be identified, Beech Street and Meridian tell GlobeSt.com. The New York City asset is a 490-unit high-rise, while the Daly City complex is a mix of mid-rise and garden-style apartments and includes a total of 2,983 units; the Beech Street refi covers three loans on 1,049 of those units.

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

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

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

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

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