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ATLANTA-The Parc at Vinings, a 30-year-old, 200-unit apartment project at 900 Lakes Dr., is headed for demolition as the new owner obtains a total $20.5-million loan package from Collateral Mortgage Capital LLC and another lender. The Parc at Vinings will be replaced by a combination condominium and retail project.

Collateral provided a $16.5-million first mortgage on the 96%-leased property, using the asset as collateral. Another lender provided a $4-million mezzanine loan. The first mortgage portion was structured as a 35-month, interest-only transaction. It was priced over the one-month Libor for 80% of redevelopment value or 100% of as is value, says Jim Hanson, a vice president in Collateral’s Atlanta office. Debt service coverage was 1.15. The mezzanine funds carried an 18% IRR lookback and a total loan-to-cost ratio of 97.5%.

“We had a very tight timeframe within which to close this deal,” says Hanson. “Initially, the seller gave us 30 days to close, and although they did give us an extension, it was close or lose a tremendous development opportunity.” The one-bedroom units at Parc at Vinings rent for an average $750 per month; the two-bedrooms for $875.

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