Metropolitan Funding Finances Apartment Complexes

David Stein, vice president of Metropolitan Funding, says the firm closed on the refinance of the Mansfield Portfolio, which consists of 242 units in five separate apartment communities in Storrs, through the FHA 223(f) program. The borrower was U of C 242, LLC, which purchased the portfolio in 1998. The five communities in the portfolio are: Clubhouse Apartments (44 units); Knollwood Apartments (136 units); Oakwood Apartments (10 units); Maplewood Apartments (40 units) and Millbrook Apartments (12 units). The transaction involved a non-recourse fixed rate (5.85% ) mortgage. The term of the self-liquidating loan was for 35 years.

Stein explains that the five apartment complexes are located nearby the University of Connecticut's main campus and are primarily occupied by university students. The developments maintain consistent occupancy levels in the 98% to 100% range, he adds. Apartment rents in the portfolio average $566 a month for one-bedroom units and $745 a month for two-bedroom units.

Metropolitan Funding's transaction in Willington was also closed through the FHA 223(f) program. The borrower was Willington Oaks Apartments, LLC, which acquired the complex in 1997. The Willington Oaks complex was built in 1967 and is located near the University of Connecticut campus as well. The 128-unit complex, also occupied mainly by university students, is consistently at or near full occupancy. Average rents there are $645 per month for one-bedroom units and $1,000 per month for two-bedroom apartments. The 35-year self-liquidating, non-recourse mortgage loan was negotiated at a locked interest rate of 6%.

The owner of the Mansfield portfolio and the Willington Oaks communities also operates First Phillips Inc., a management firm that provides on-site management at the various student apartment developments.