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Over $1 Billion in Recent Commercial Deals

Over $1 Billion in Recent Commercial Deals

Commercial mortgage activity

December 26, 2007

By COCO SALAZAR

photo of Coco Salazar
Apartment properties financed by the dozens racked up over $260 million in loan deals recently. But it was one $500 million hotel transaction that trumped the rest in this latest journal of commercial mortgage activity.

Arbor Commercial Funding LLC announced it funded a $1.0 million loan for the acquisition of Bloomfield Hills Townhouses Cooperative, a 285-unit complex in Pontiac, Mich. The 6-year, Fannie Mae-approved loan amortizes over 30 years and has a note rate of 6.75 percent.

A $1.3 million loan for the acquisition of 108-unit Georgetown Homes Cooperative in Hammond, Ind., carries a 30-year term and amortization, with a note rate of 6.77 percent, according to Uniondale, N.Y.-based Arbor.

Over in Warner Robins, Ga., the 74-unit Foxwood Apartments collateralized a 10-year acquisition loan of $1.6 million on a 30-year amortization schedule and 6.75 percent rate, Arbor announced.

A 10-unit complex known as 195 A Washington Park in New York, N.Y., found a $1.6 million also through Arbor, which said the loan is for 10 years, amortizes over 30 years and carries a note rate of 6.60 percent.

Melbourne, Fla.’s, Woodlake Apartments secured a $2.0 million loan from AmeriSphere Multifamily Finance LLC, NorthMarq Capital Inc. said. Sutton Properties will repay the loan for the 462-unit property on a 102-month term, coterminous with first mortgage, with a 30-year amortization schedule.

A $2.1 million mortgage enabled Mission Woods LLC to refinance the 48-unit Mission Woods Apartments in Kansas. NorthMarq, based in Minnesota, said the loan was based on a 10+1 year term with a 30-year amortization schedule.

Arbor announced the funding of a 7-year $2.5 million loan, with 30-year amortization and rate of 6.02 percent, for the acquisition of 88-unit 4590 Washington Road in Atlanta, Ga.

The 24-unit Riverwalk Apartments in Lansing, Mich., secured a 10-year loan of $2.7 million that amortizes on a 30-year schedule with a note rate of 6.18 percent, Arbor announced.

Promenade @ Desert Sky, a garden style apartment complex of 300 units across 17, two-story buildings in Phoenix, Ariz., secured a $2.9 million second mortgage, NorthMarq said.

A $3.6 million loan funded by Arbor reportedly enabled the acquisition of 125-unit Willowood Apartments in Trotwood, Ohio. The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.39 percent.

Missouri-based Love Funding recently announced it secured $3.9 million for the refinancing of Claibourne Hughes Health Center , a 147-bed assisted living facility in Franklin, Tenn. The loan has a 5.95 percent interest rate and 35-year amortization.

First mortgage refinancing of $4.0 million was secured by the Madison Mall Apartments, a 64-unit property in Madison, N.J., NorthMarq announced. Madison Mall Apartments LLC agreed to repay the Freddie Mac loan on a 25-year term with a 25-year amortization schedule.

Over in Illinois, Garden House of Park Forest, a 145-unit, 14-story multifamily property, secured a $5.2 million loan with a 7-year term and 30-year amortization schedule. NorthMarq said it enabled the financing for GHPF LLC through Freddie Mac.

Arbor said Fannie Mae approved a 10-year $7.0 million loan at rate of 5.95 percent and 30-year amortization for the refinancing of South Pointe Apartments, a 144-unit complex in Southgate, Mich.

A $7.3 million refinance loan of 10 years, 30-year amortization and 6.10 note rate was collateralized by the 180-unit complex known as Arbor Glen Apartments in East Lansing, Mich., according to Arbor.

An 18-month fixed-rate refinance loan of $11.8 million collateralized by Grindstone Canyon Apartments, a 201-unit property in Columbia, Mo., was funded by Protective Life Insurance Co. and provided to Columbia Apartment Co. LLC and the New Solana Center LLC, NorthMarq reported.

In New Orleans, La., the 341-unit Lake Wind East Apartments collateralized a 10-year, $15.0 million loan approved by Freddie Mac that amortizes over 30 years, NorthMarq said.

Marquette Realty Capital funded a 3-year, interest only $16.1 million bridge loan, in excess of 90 percent loan-to-cost, for Webster Manor Apartments, a 306-unit property in Webster, N.Y., NorthMarq reported.

Whispering Winds Apartments, a 286-unit multifamily community in Houston, Texas, secured a financing and joint venture equity of $17.0 million for Post Investment Group, Holliday Fenoglio Fowler L.P. announced. Freddie Mac approved the financing for a fixed-rate of 5.27 percent, and NDC Capital Partners provided joint venture equity.

Citizens Housing Bank issued a $17.8 million loan to Neighborworks Blackstone River Valley to build 80 new rental units of affordable senior housing in Providence, R.I., parent Citizens Bank announced.

A $27.1 million construction loan, with an interest rate of 6.25 percent, was reportedly funded by Love Funding for the Westridge Apartments, which will consist of 312 units in Jacksonville, Fla.

Canyon Capital Realty Advisors announced it funded a $35.0 million loan to refinance and to acquire existing senior and mezzanine debt collateralized by 12 garden-style condominium conversion developments, which hold over 2,100 multi-family units in Florida, Arizona and Nevada and are owned by SunVest Communities USA LLC.

A $36.0 million bridge financing for Rincon Apartments, a 288-unit multifamily property in Houston, Texas, was based on a 3-year term interest only, NorthMarq said.

NorthMarq said a foreign bank provided a $38.8 million construction loan for a new 102-unit, middle-income condominium building under construction in Brooklyn, N.Y.

In retail, Indiana-based Midwest Capital Corp. said it provided 90 percent of the financing and a 25-year amortization for the $0.7 million purchase of a Burger King in Indianapolis.

Ken-Mart, a 66,000-square-foot retail property in Jacksonville, Fla., secured a $1.2 million financing based on a 25-year term with 25-year amortization, NorthMarq Capital said. Ken-Mart Realty was able to obtain the funds through NorthMarq’s correspondent relationship with StanCorp Mortgage Investors LLC.

Over in New Port Richey, Fla., the Shoppes at Ridge Road collateralized a $1.4 million loan by Skymar Capital Corp. at a permanent fixed-rate of 6.30 percent for 10 years, with a 25-year amortization and a loan-to-value of 70 percent. The retail center is 7,000 square feet, Thomas D. Wood and Co. announced.

JP Morgan Private Client Services provided to Lerner Family Trust a 10-year, $4.1 million with a 30-year amortization schedule collateralized by a Fresh Market in Richmond, Va., that measures 31,394 square feet, NorthMarq Capital Inc. said.

Over in Commerce, Calif., Commerce Corner secured an 10-year, $8.9 million acquisition loan, which represented 70 percent of the purchase price and is interest only for the first four years. The center, comprised of one two-story and five single-story buildings, has 44,562 square feet of net rentable area.

Protective Life Insurance Co. provided a $12.0 million, 10-year loan with 25-year amortization to Libby-Beckley Enterprises LLC that was collateralized by the Beckley Crossing, a 196,000 square foot shopping center in Beckley, Va., that houses a Kroger, Hobby Lobby and TJ Maxx, NorthMarq Capital Inc. announced.

South Coast Plaza, a Corpus Christi, Texas property that includes a Big Lots within its 101,044 square feet, secured a 10-year, $12.8 million loan that amortizes over 30 years and was provided by Prudential Mortgage Capital Co., NorthMarq said.

In Medford, Ore., the 183-850 square-foot Bear Creek Plaza secured a 5-year fixed-rate $14.4 million financing, which was 75 percent of purchase price and the first two years are interest only, .NorthMarq said.

Bank of the Ozarks provided a $15.5 million construction mortgage for Rialto Village Town Center in San Antonio, Texas. Rialto Village LP was approved for the loan for the property, which consists of 150,895 square feet of retail and 58,500 square feet of office space, with Walgreens as the major tenant, NorthMarq said.

General Growth Properties Inc. recently announced that it has closed $1.4 billion in mortgages since the end of the third quarter. The real estate investment trust has $900 million in binding commitments for secured mortgage financing of certain properties scheduled to close in January 2008. It expects to fund the initial payment of the previously announced acquisition of The Shoppes at Palazzo and raise $270 in incremental proceeds after the existing mortgages are paid off.

“While these are turbulent times in the capital markets, these financings and commitments clearly demonstrate that our lenders continue to value the consistently positive and stable cash flow growth of General Growth’s portfolio of high quality regional malls,” General Growth said in the announcement, adding that the “outlook in our core business remains very strong, and we continue to expect at least 5% average Comparable NOI growth in 2007-2009.”

Among office building transactions, a $3.5 million permanent financing was collateralized by the Potomac Corporate Center, a three-story office property of 45,677 net rentable square feet in Centennial, Colo., NorthMarq said.

American National Insurance Co. provided a 10-year, $7.4 million loan that amortizes over 25 years for 300 Canal View, a 90,584 square foot office property in Rochester, N.Y., which houses a Paychex and Nortel, NorthMarq said.

One Merrick Avenue, an office building of 52,138 square feet in Westbury, N.Y., secured a 2-year $10.8 million bridge loan funded by New Star Financial for 1 Merrick LLC, NorthMarq announced.

A $73.2 million financing collateralized by a 325,000-square-foot, Class A office building in Washington, D.C., Holliday announced. Urban America L.P. was able to receive the 7-year, fixed-rate securitized loan through UBS Investment Bank.

Hotel deals saw the biggest dollars.

Hotel deLuxe in Portland, Ore., collateralized a 10-year, fixed-rate loan of $24.0 million priced at 200 basis points over the 10-year Treasury, with interest only for the initial two years of the term. The interest rate was in the low 6 percent range for the 8-story, 130-room hotel, which has a 1960s “Hollywood” theme, Los Angeles-based Sonnenblick-Eichner Co. announced.

A Hilton Garden Inn in Fairfax, Va., secured a $27.3 million first mortgage funded by an affiliate of a Wall Street investment bank, Santa Monica, Calif.-based Vista Capital Co. announced. The 10-year fixed-rate loan for the 149-room, five-floor hotel features interest-only payments for the first two years.

A 654-room, three-hotel portfolio in Massachusetts collateralized a $64.5 million, 3-year, adjustable-rate mortgage from Anglo Irish Bank Corp. and $22.0 million in joint venture equity from Strategic Capital Partners. Linchris Hotel Corp. was the borrower. The portfolio consists of the Holiday Inn Brookline, Hampton Inn Boston-Logan Airport and Holiday Inn Mansfield, according to Holliday, a subsidiary of Pennsylvania-based HFF Inc.

Trump Entertainment Resorts, Inc. refinanced first liens on Atlantic City properties including the Trump Taj Mahal, Trump Plaza and Trump Marina for $500.0 million with Beal Bank Nevada, according to an announcement last week. Beal’s “competitive terms and certainty of funding” landed it the deal.

Over in Omaha, Neb., a 25,000 square-foot industrial building named Starwood Industrial secured a $1.2 million loan with a 10-year term and 25-year amortization provided by Columbian Mutual for TDF LLC, NorthMarq reported.


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