Getting Capital Deals Done Under Deadline

ORLANDO—The credit markets are not only thawing, in  some cases they are flowing like a river. Beech Street Capital just closed a $22.1 million Freddie Mac CME loan for its client to acquire Highpoint Club, a 348-unit garden-style multifamily complex in Orlando, Florida.   

Beech Street senior vice presidents Mitch Sinberg and Michael Wallace, headquartered in Beech Street's Fort Lauderdale office, originated the transaction. The fixed-rate loan has a seven-year term, one-year interest-only period, yield maintenance of 6.5 years, and a 30-year amortizing schedule.

“The borrowers were concerned about the time it would take to complete the transaction,” says Wallace. “We were able to move things along quickly so that they closed within the terms of their purchase and sale agreement.”   

The borrowers' experience and the property's condition and amenities were also instrumental in facilitating the timeline. The previous owner had maintained 43 two-story buildings well.  

But tight time frames are a theme in almost every Beech Street announcement. Check out the recent history of the firm's deals:

Despite tight deadlines, Beech Street recently closed two Freddie Mac loans for Azure Partners, a real estate private equity firm based in New York City. The first was a $14.2 million Freddie Mac CME loan to acquire Hamptons at Sandy Springs, a 236-unit multifamily property in Roswell, GA. The second was a $32.8 million Freddie Mac CME loan for the purchase of the 261-unit Aston Woods Apartments in Silver Spring, MD.

In both cases Azure wanted to rate lock within as few days as possible of the deposit on its purchase contract becoming nonrefundable. By closely coordinating with Freddie Mac, Beech Street met the borrower's compressed deadlines. Both 10-year, fixed-rate loans have partial interest only terms and amortize based on a 30-year schedule after the interest only period. 

Beech Street also recently closed an $11 million Fannie Mae conventional loan to acquire two multifamily properties in the Quincy, MA area. The Carriage House and Coach House Apartments have a total of 149 units, and the transaction was completed in 30 days due to tight deadlines. The loan is fixed-rate with a 10-year term plus one-year interest-only, 9.5 years yield maintenance and a 30-year amortizing schedule.

Beech Street also closed on $92.6 million in Freddie Mac Capital Markets Execution loans on the acquisition of a three-property multifamily portfolio spanning 1,333 units in Nashville. “With this acquisition specifically, the borrower needed to have the transaction happen within a very rapid time frame,” Grace Huebscher, president and CEO at Beech Street Capital, tells GlobeSt.com. “Beech Street and Freddie Mac really stepped up to provide certainty of execution, and did so on very competitive terms.”

In both cases Azure wanted to rate lock within as few days as possible of the deposit on its purchase contract becoming nonrefundable. By closely coordinating with Freddie Mac, Beech Street met the borrower's compressed deadlines. Both 10-year, fixed-rate loans have partial interest only terms and amortize based on a 30-year schedule after the interest only period. 

Beech Street also recently closed an $11 million Fannie Mae conventional loan to acquire two multifamily properties in the Quincy, MA area. The Carriage House and Coach House Apartments have a total of 149 units, and the transaction was completed in 30 days due to tight deadlines. The loan is fixed-rate with a 10-year term plus one-year interest-only, 9.5 years yield maintenance and a 30-year amortizing schedule.

Beech Street also closed on $92.6 million in Freddie Mac Capital Markets Execution loans on the acquisition of a three-property multifamily portfolio spanning 1,333 units in Nashville. “With this acquisition specifically, the borrower needed to have the transaction happen within a very rapid time frame,” Grace Huebscher, president and CEO at Beech Street Capital, tells GlobeSt.com. “Beech Street and Freddie Mac really stepped up to provide certainty of execution, and did so on very competitive terms.”