$61M Bridge Loan Turns Into $64M Freddie Loan

ATLANTA—Park 83 just secured a $64 million Freddie Mac loan. The 664-unit multifamily asset is in Roswell, GA.

Keith Hires and Tim Wright of Greystone arranged the multifamily loan. Greystone provided a $60.5 million bridge loan in 2014 for the acquisition of Park 83, then guided Cortland Partners to a permanent exit with Freddie's Program Plus platform within 12 months. The seven-year Freddie loan includes three years of interest only followed by 30-year amortization for the remaining term.

“Park 83 has been a key investment within our portfolio, and Greystone's execution of bridge and permanent financing was outstanding,” says Mike Altman, Chief Investments Officer at Cortland. “After the initial renovation, Park 83's rents were still rising and outpacing market growth. Greystone's unique bridge product allowed us to fully realize the stabilized value of Park 83 before pursuing permanent financing through Greystone's capital markets platform.”

Park 83 is a luxury multifamily complex located north of Atlanta that offers of one-, two- and three-bedroom units. Community amenities include two swimming pools, a fitness center, nature trails, tennis courts, volleyball court, dog park, and playground. In the last year, the multifamily property increased occupancy to 96%.

“We are grateful to have had the opportunity to perform for the borrower on both the interim and permanent financing for this transaction,” says Mark Jarrell, head of Greystone's Portfolio Lending Group. “As we knew from the beginning, time was of the essence for the bridge loan, which closed quickly, and we were able to execute the best outcome for an exit to Freddie Mac financing.”