Kalikow Group Secures $11M Loan for Mebane Apartments

RALEIGH, NC-Mebane Apartments Associates secured a $10.8 million permanent first mortgage on Ashbury Square Apartments in Mebane. The new loan replaces initial construction financing for the property.

The Kalikow Group worked on behalf of Mebane Apartment Associates, a New York-based joint venture, to get the deal done with Arbor Commercial Funding, LLC. Edward Kalikow, president and CEO of the Kalikow Group, led the transaction.

“We chose Arbor Commercial Funding due to an existing relationship and our previous dealings with them,” Kalikow tells GlobeSt.com. “This is our fourth deal with Arbor in the last 90 days.” Arbor is a Fannie DUS lender.

Located at 202 Ashbury Blvd. in Orange County, NC, the rental multifamily property consists of 192 units within eight two- and three-story multifamily buildings totaling approximately 187,760 net rentable square feet. The 19.2-acre multifamily community also has 41 detached garages, a clubhouse, swimming pool, playground, maintenance shop and laundry facility.

“Ashbury Square Apartments offers a moderately priced alternative to larger, overpopulated metropolitan areas in the vicinity,” says Kalikow. “The development offers an excellent environment to live and work, convenient interstate access and excellent entertainment, shopping, schools, hospitals and employment opportunities within a five-mile radius.”

Mebane Apartment Associates acquired the multifamily site in 2005. Construction was completed in 2007. The newest development of its type in the area, the property is currently 98% occupied. UNC Hospitals, Blue Cross & Blue Shield of NC, Walmart, General Electric Corp. and Aramark Services are the area’s leading employers and the multifamily units are convenient to both the Research Triangle and the Piedmont Triad regions, located between the cities of Raleigh and Greensboro, NC.

“Beyond the multifamily sector I foresee continued weakness in our economy as unemployment remains high, global economic uncertainty remains and the election outcome is in doubt,” Kalikow says. “Since the new mantra is ‘capital has no conscience’—or memory—the CMBS markets may underwrite projects below proper standards to just  get the money out the door.”