NORTH RICHLAND HILLS, TX-A private investor from North Texas has placed new debt against the 152-unit Emerald Park Apartments just as a loan that he assumed eight years ago was about to expire. The $4.73 million of fresh capital keeps cash flow constant at a lower interest rate and replenishes the till from a steady stream of renovations.
Nomura Securities Co. of New York City bested a field of 10 lenders vying for the nod of the Southlake investor, whose collateral is a 95%-leased, 21-year-old complex at 8341 Emerald Hills Way. The 10-year financing cleared with a 72% loan-to-value ratio and 5.78% fixed-rate interest, Jason Rice with Dallas-based Quantum First Capital LP, tells GlobeSt.com. He adds that the rate and "ease of execution" put the refinancing into Nomura's bank of loans.
Rice says the expiring Fannie Mae loan, serviced by a New Jersey-based Prudential division, had an 8.5% fixed-rate interest. "He was able to just get a better deal, take some money out and keep his cash flow the way it was," Rice says. "He didn't want to sell although he could have gotten a good price for it. It worked out perfectly."
Due to the owner's maintenance program, Rice says the eight-building complex, positioned on 7.7 acres, is a class A property in its submarket. The one-, two- and three-bedroom assortment has units averaging 940 sf and 68 cents per sf rents.
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