WASHINGTON, DC-TIAA-CREF secured $92.6 million in acquisition funding from Fannie Mae via M&T Realty Capital Corp. It used the proceeds to buy a luxury apartment building in the Mount Vernon submarket, MassCourt East End, a 371-unit complex that is 96% leased. TIAA-CREF received a 2.88% fixed-rate loan for the transaction, according to HFF.
Like so many institutional investors, TIAA-CREF routinely recycles assets to maintain a competitive portfolio. And like so many institutional investors—these days at least—it is selecting multifamily as the asset to acquire and hold right now. This past summer, TIAA-CREF has sold two office buildings in Alexandria, Va., for $191 million to J.P. Morgan.
The GSEs, of course, are the fuel in this fire, as any number of examples can show. To cite just one, last week Beech Street Capital announced it provided a $29.1 million Fannie Mae conventional loan to refinance LaSalle Park, a 354-unit garden-style multifamily property located in Hyattsville, Md.
The company originated the transaction for Meridian Capital Group LLC. That particular loan had a fixed-rate with a 10-year term with 9.5 years of yield maintenance.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
