CBRE Arranges Challenging Multifamily Refi

MIAMI—Despite some challenging circumstances, River Oaks Apartments, a 199-unit multifamily property in Miami, has won a $31 million refi. CBRE's Debt & Structured Finance Group arranged the loan on behalf of the owner, AP SC River Oaks LLC.

Redwood Commercial Mortgage Company, a division of CA-based Redwood Trust, provided the financing. According to CBRE, the 10-year loan is partial interest (five years) only closed at an aggressive rate and terms. The deal was done in less than 30 days after AP submitted its paperwork.

“This property is an exceptional multifamily asset along the Miami River at the foot of our exploding health district, “says Charles Foschini, vice chairman with CBRE's Debt & Structured Finance Group. “The leverage that the borrower required to pay off its existing note made for a bit of a challenge as it required a more robust loan than the market is accustomed.”

Built in 2011, River Oaks is located at 1951 Northwest South River Drive. In addition to the 199 one-, two-, and three-bedroom multifamily units, the property also includes two commercial ground floor units. Community amenities including a riverwalk, theater room, business center, fitness center, pool and spa, clubroom, gated access with 24-hour surveillance system, and covered parking with controlled access.

“Working together, we selected Redwood from a very competitive field due to its unique ability to offer a B piece and A note from the same source,” Foschini says. “This greatly reduced the volatility of the transaction for a high leverage loan, and allowed for a seamless closing before the refinance date of the prior mortgage.”

CBRE Institutional Group team leader Foschini and first vice president Christopher Apone, along with CBRE vice chairman Christian Lee of the firm's Capital Markets Institutional Group, and Robert Given and Gerard Yetming of the Multihousing Institutional Group, arranged the loan.