OLD TOWN, VA-AEW Capital Management has secured a 12-year, fixed-rate $75 million for Cameron Court, a 460-unit apartment community here. Prudential Mortgage Capital Co. is providing the financing, which CBRE helped arrange.
It is a straightforward transaction, CBRE's Maury Zanoff tells GlobeSt.com, with the addition of one rather novel feature: the lender is allowing the borrower to substitute collateral in the future using the same loan.
"That was a prevalent feature before the recession and we are just now starting to see it come back," Zanoff says. "Lenders are willing to entertain it for blue chip borrowers." He anticipates demand will increase as interest rates rise.
Cameron Court delivered in 1997. It recently received $3.3 million, or $7,174 per unit, in interior and exterior renovations. It is currently 95.65% occupied. There was heavy competition for the loan including from life companies, banks and agencies. Zanoff notes that the deal closed within three weeks, despite the recent turmoil in the market.
Zanoff, along with colleagues Joe Donato, Mitchell Kiffe and Jamie Leachman arranged the financing on behalf of AEW Capital Management.
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