ATLANTA—Star McGinnis Ferry, an indirectwholly-owned subsidiary of Steadfast ApartmentREIT, just inked a $73.7 million acquisition loan forResidences on McGinnis Ferry. The multifamilycommunity is in Suwannee, GA.

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Berkadia Commercial Mortgage arranged the loan.Berkadia senior vice president Matt Greer workedwith the borrower to secure the 10-year, floating-rate financingthrough the firm's Fannie Mae program. Loan termsinclude a 1.85% variable rate, five years of interest-onlypayments, 75% loan-to-value ratio and a 30-year amortizationschedule.

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“Ongoing employment growth and limited supply is fueling strongdemand in the greater Atlanta market,” says Greer. “Our regionalFannie Mae team is based in Atlanta, so we were able to leverageour local expertise to provide the client with the resources itneeded to capitalize on these opportunistic market conditions.”

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The Residences on McGinnis Ferry is located at 4021 McGinnisFerry Road. The property offers 696 one-, two- and three-bedroomunits and is over 96% occupied. The multifamilyasset sits on over 86 acres of land about 32 miles outside ofAtlanta.

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Jim Grauley, COO and president ofColumbia Residential in Atlanta, tells GlobeSt.comwe've long been in an environment of historically low interestrates. It's also been a period during which lack of supply hasbrought the multifamily market back in a big way. What does thatmean for future developments like Residences on McGinnis Ferry?

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“Rising rates over these extraordinarily low levels will bringfinancing market back into more historical normal situation,” saysGrauley. “This does not mean that projects can't get done, but theywill not be able to overly rely upon these low rates. Equityreturns will have to be there and more subsidy on affordableside. The gap just adjusts with what can be underwritten forthe debt portion.”

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