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RENTON, WA-Passco Cos., the Irvine, CA-based TIC sponsor has acquired the Madison at Fairwood here for approximately $42 million, according to Newport Beach, CA-based Cohen Financial, which sourced the acquisition loan. The 382-unit apartment complex is located at 17425 120th Lane SE, near Downtown Renton.

Cohen says the $34.77 million loan is sourced from a “large commercial bank” provided 68% of the total acquisition and renovation costs, which means the total investment is approximately $51 million. The terms of the three-year loan include two, one-year extensions and 25% recourse. The loan also includes approximately $4.2 million of future fundings that will be used for property renovations and interest expense shortfalls.

The financing is the fifth such transaction Cohen has secured for the sponsor in the past three years. The loan was sourced by Mark Strauss and Bruce Krall and Kevin Greenberg out of Cohen’s Newport Beach office.

“The major issue we faced was to find a lender that understood the TIC structure and how it would work given the value add nature of the investment in this property,” says Strauss, a managing director with the company. “This was also a very unique and difficult transaction because we were working in a marketplace where financing sources for assets with TIC syndicated ownership structures had contracted due to the CMBS market’s upheaval.”

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