MIAMI—In two deals that demonstrate the capital markets demand for strong multifamily asset lending, CBRE just arranged $64.8 million in acquisition loans. Both deals were inked with Freddie Mac.

CBRE secured $40.56 million for Advenir, a Castle Rock, Colo.-based investment firm, to acquire the Lodge at Castle Pines, a 356-unit multifamily community. CBRE also arranged a $24.2 million loan for Momentum Real Estate Partners for the acquisition of the 246-unit multifamily community known as Legacy Point in Arlington, Texas. Both achieved aggressive interest rates.

“There was intense competition for the multifamily assets because they were very strong assets for their markets,” CBRE vice chairman Charles Foschini tells GlobeSt.com. “The operators in both cases are very experienced funds and high quality buyers that most lenders would like to make a loan to. In the time frame that each locked rates and closed, the market was very favorable for closing a loan.”

Terms of the financing for Lodge at Castle Pines include a 120-month loan term, a 197-basis point spread over the 10-year treasury yield, interest-only financing for 24 months, and then an amortization period of 360 months. For Legacy Point, CBRE secured a 120-month loan term with a spread of 201 basis points over the 10-year treasury, a period of interest-only financing for 48 months, then a 360-month amortization period.
 
“The trend continues,” Foschini says. “If you have a high quality multifamily asset and a strong borrower, you don’t really have to look any further than Freddie Mac or Fannie Mae for your loan.”

The 356-unit Lodge at Castle Pines community was built in 2002 and sits on more than 28 acres. The total rentable square footage for the property is 384,702 square feet with an average units size of 1,800 square feet. Legacy Point was built in 1995. The 246-unit community has a total 253,484 rentable square footage with an average unit size of 1,030 square feet.
 
CBRE vice chairman Christian Lee, along with vice president Christopher Apone of CBRE’s Capital Markets Institutional Group in South Florida, worked with Foschini to secure financing for the borrowers.

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