Baltimore Apartment Secures $33M Fannie Mae Loan

BALTIMORE-A local Baltimore developer has secured $33 million in Fannie Mae conventional financing to refinance two apartment buildings here. Beech Street Capital LLC brokered the transaction for the portfolio, which totals 907 units across two complexes--Kings Mill Apartments and Tall Oaks Apartments. The transaction was originated by Adam Bieber, assistant vice president in Beech Street’s Bethesda office. The borrower has managed and owned both apartment buildings since they were developed in 1970 and 1971.

This was the fourth and fifth transaction with the borrower for Beech Street. The company was able to rate lock both deals within a week of receiving the application. Tall Oaks, specifically, was a six-month extended rate-lock, which meant the borrower was able to secure a low fixed-rate while lowering yield maintenance costs. “The speed with which we moved on these deals will hopefully give us a leg up in securing more business with the borrower in the future,” Bieber says in a prepared statement. The fixed-rate loans have a 10-year term, 9.5 years of yield maintenance and 30 years of amortization payable on an actual/360 basis.

Kings Mill Apartments is a 611-unit property located in Essex, Baltimore County. Tall Oaks Apartments is a 296-unit garden-style property located in the Parkville neighborhood of Baltimore County.

As with much of the nation, multifamily fundamentals in the Baltimore area are stable, if not strong, according to a Q1 Multifamily Outlook report from Delta Associates. It has found that class A vacancy is down 60 basis points from last year, to 4.2%. Also, concessions in the Baltimore metro area have fallen slightly since last year to 2.8% at March 2012, from 2.9% in March 2011, while average effective rents in the metro area are $1,497, or $1.49 per square foot.