ATLANTA—Dekel Capital just closed on a $10.6 million bridge loan for the acquisition and renovation of a luxury multifamily community in Atlanta. The interest-only loan offers an 18-month term and will finance renovations at The Villas on Briarcliff.
Villas at Briarcliff is an 82-unit multifamily property in the North Druid Hills neighborhood of Atlanta. The townhome and garden-style multifamily community is close to some of the area's major arterials, including Interstate 85 and Interstate 285.
“Driven by corporate relocations, Atlanta is experiencing solid growth and has a healthy outlook for 2016 with its stable employment base,” says Shlomi Ronen, founder and principal of Dekel. “This stable market, along with the sponsor's realistic value-add plan for The Villas on Briarcliff, allowed for lender due diligence to proceed quickly, as we needed to close the deal on an accelerated timeline.”
The floating rate loan was arranged in 30 days. Berkadia Commercial Mortgage, one of Dekel's longtime capital relationships, provided the loan. The owner will begin an immediate renovation plan on both unit interiors and common areas.
The multifamily complex offers is near Midtown, Downtown, Emory and Buckhead; some of Atlanta's primary business districts. More than 50 million square feet of nearby class A office buildings are in the immediate area.
“Lenders are already exhibiting more caution and discipline in response to a slowing US economy, energy volatility and slowing global economic activity—China just reporting a 6.9% GDP, its lowest rate in a quarter century,” KC Conway, SunTrust Commercial Real Estate's credit risk manager and head of valuation, tells GlobeSt.com. “Developers should probably expect debt lenders to return to underwriting based on rents and occupancies in place versus pro forma numbers.”
ATLANTA—Dekel Capital just closed on a $10.6 million bridge loan for the acquisition and renovation of a luxury multifamily community in Atlanta. The interest-only loan offers an 18-month term and will finance renovations at The Villas on Briarcliff.
Villas at Briarcliff is an 82-unit multifamily property in the North Druid Hills neighborhood of Atlanta. The townhome and garden-style multifamily community is close to some of the area's major arterials, including Interstate 85 and Interstate 285.
“Driven by corporate relocations, Atlanta is experiencing solid growth and has a healthy outlook for 2016 with its stable employment base,” says Shlomi Ronen, founder and principal of Dekel. “This stable market, along with the sponsor's realistic value-add plan for The Villas on Briarcliff, allowed for lender due diligence to proceed quickly, as we needed to close the deal on an accelerated timeline.”
The floating rate loan was arranged in 30 days. Berkadia Commercial Mortgage, one of Dekel's longtime capital relationships, provided the loan. The owner will begin an immediate renovation plan on both unit interiors and common areas.
The multifamily complex offers is near Midtown, Downtown, Emory and Buckhead; some of Atlanta's primary business districts. More than 50 million square feet of nearby class A office buildings are in the immediate area.
“Lenders are already exhibiting more caution and discipline in response to a slowing US economy, energy volatility and slowing global economic activity—China just reporting a 6.9% GDP, its lowest rate in a quarter century,” KC Conway, SunTrust Commercial Real Estate's credit risk manager and head of valuation, tells GlobeSt.com. “Developers should probably expect debt lenders to return to underwriting based on rents and occupancies in place versus pro forma numbers.”
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