Two Austin Multifamily Properties Trade

AUSTIN, TX—Capital One Multifamily Finance has provided Freddie Mac fixed loans totaling $42.8 million for the acquisition of two class A apartment properties in Austin—the 5th Street Commons, a 150-unit property built in 2009, and the Pressler, a 168-unit property constructed the same year. The transaction was originated by Brian Sykes, Beech Street’s senior vice president of originations headquartered in the company’s Boston office. This is the latest of a series of transactions that the purchaser, Intercontinental Real Estate, has completed with Capital One Multifamily through its US Real Estate Investment Fund.

“In an effort to maximize the return for the investor, we worked with Freddie Mac to provide a very competitive seven-year, full-term interest-only loan,” Sykes says. In the process, Sykes and his team worked through several complex issues with the agency, including a master ground lease for the retail portion of the property. This enabled Capital One Multifamily to close the loan at the promised spread and proceeds levels.