TUCSON-A local partnership has retired a bridge loan after six months with $29.7 million in permanent financing, secured by the 379-unit Rio Cancion Apartments in the Foothills submarket. The new 30-year deal represents a 77% loan to value.
"The original bridge loan was for $29.2 million and it focused on acquisition, interest carry and some renovation. As of this second loan's closing, there was just a rear pool area and club house to be finished up," Stewart Campbell, vice president of Capmark Finance's New York City office, tells GlobeSt.com. TransWest Partners LLC's new deal for 2400 E. River Rd. is a Freddie Mac package, which has 10 years of interest-only payments. The fixed-rate interest is 5.98%.
Campbell, who set up the original financing in January 2006, tells GlobeSt.com that TransWest initially acquired the 24-year-old complex with an eye toward a condominium conversion. As the condo market slowed and demand for rental units increased, he says TransWest opted to keep the 95%-leased Rio Cancion for its long-term income potential and decided to retire the short-term loan. "We liked it as a conversion, then when that market went away it worked well as a refi of a rental deal," he adds.
Campbell says a lot of conversions in Tucson are ending up as rentals due to the slowing condo market, but not all can make it in that arena. "This deal would have worked well either way," he says. "It was just as compelling a rental as it was a conversion."
Situated on close to 18 acres, Rio Cancion Apartments has 16 two-story buildings. Its one-bedroom units measure 774 sf and two-bedroom apartments go from 918 sf to 1,206 sf. Rents range from $639 to $963 per month. The refinance carries a fixed rate of 5.98% and interest-only payments during the first 10 years.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.