$28.5M Refi Helps Conslidate Debt

BATON ROUGE, LA-The ownership of the 352-unit Evergreen at Coursey Place Apartments has refinanced the asset, thanks to a $28.5 million loan, complete with a 10-year note, a 30-year amortization and at an interest rate of a little more than 5%. According to a press release from lender Deutsche Bank Berkshire Mortgage (DBBM), the note is being used to consolidate two loans previously on the asset.

Though representatives from DBBM were not available to comment on the loan, a search through the GlobeSt.com archives and Securities and Exchange Commission (SEC) filings shed further light on the transaction. Evergreen at Coursey Place, formerly known as Pinnacle Homes at Coursey Place is at 13675 Coursey Blvd., and GlobeSt.com reported in 2008 that Northview Realty Inc., a Canadian investor, acquired the asset from developer/owner Colonial Co. for $29.5 million.

A search among SEC files reveals that Northview Realty has partnered on other multifamily acquisitions with Paladin Realty Income Properties Inc. in Southern California, Boston, MA-based Evergreen Residential and BH Management in Des Moines, IA. It’s unclear whether this particular partnership own has a stake in Evergreen at Coursey Place, though a summer 2011 filing notes that the 2003-constructed asset belonged to a wholly owned subsidiary of a joint venture dubbed Evergreen at Coursey Place Sole Member LLC and controlled by Charles M. Thompson, Evergreen Residential’s managing principal.

The filing also notes that PRIP Coursey LLC, a subsidiary of Paladin Realty Income Properties Inc., paid $5 million in cash to acquire an interest in the joint venture, with the DBBM loan obtained in conjunction of that acquisition, and as an effort to recapitalize the asset. The loan matures on August 1, 2021.  

Since acquiring the asset, the owners invested approximately half a million dollars on upgrades to 220 of the units. The SEC filing says the remaining units will be upgraded with help from the refinancing proceeds.