WASHINGTON, DC-A life insurance company provided a low-leverage $10 million refinance loan to local company Daro Realty for two properties here--Sedgwick Gardens and Parkway Apartments. The life company, which did not want to be identified, competed aggressively for the deal because of the properties’ location, Will Baker, vice president of multifamily finance at Walker & Dunlop tells GlobeSt.com. “These properties are in the heart of Cleveland Park,” he notes. Baker, along with senior vice president of Capital Markets, Ted Hermes, originated the loan.
Baker declined to discuss specifics of the financing, other than to say it is a low leverage--roughly 50%--loan, structured with a 10-year term and a 30-year amortization. “The GSEs were interested as well, but because of the borrower structure it was a better fit for a life company,” he says.
One aspect that didn’t affect competition or subsequent offers, he says, was the downgrade two weeks ago. “It has been business as usual” he says. “We have seen spreads widen a bit on Fannie Mae and Freddie Mac, and in the last few days they seem to have stabilized. But as far as underwriting goes we have seen no impact at all.”
Sedgwick Gardens is a 119-unit apartment community that was constructed in 1933. Parkway Apartments is an 87-unit apartment community that is only slightly older, built in 1928.
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