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Hilary Provinse Multifamily Financing quote

Multifamily Financing Outlook Positive Despite Volatility, Interest Rates

by Sarah Daniels February 10, 2022

2021 was an exciting year in the multifamily financing market, and for Berkadia mortgage banking — we originated over $40 billion in volume for our clients across our various lender programs, an increase of 50 percent over our 2020 volumes. Every lender in the market demonstrated a strong appetite for originating loans and increased their holdings of mortgages, which was crucial given that the Federal Housing Finance Agency (FHFA) lowered the caps for Fannie Mae and Freddie Mac to $70 billion each. While the final numbers haven’t been released yet, the Mortgage Bankers Association (MBA) projected the market would originate $578 billion of loans backed by commercial real estate in 2021, a 31 percent increase from 2020 ($442 billion) and just below 2019’s record volume of $601 billion. The fundamentals of the multifamily sector drove unbelievable rent growth, which in turn drove increased investor interest. In 2021, we advised on 762 investment sales transactions, totaling close to $27 billion in volume, a truly record-breaking year for us! This tremendous investor appetite brought about an enhanced need for financing, and often more creative financing. With the government-sponsored enterprises (GSEs) more limited, life companies and commercial banks answered the call, but the …

February 10, 2022

Affordable Housing District of Columbia Loans Multifamily Southeast

Merchants Capital Secures $115M in Financing for Two Workforce Housing Developments in D.C.

by Julia Sanders February 9, 2022

WASHINGTON, D.C. — Merchants Capital has secured $115 million in total financing for Parkside 8 and Parkside 10, two workforce housing developments located in Washington, D.C. The borrowers, City Interests Development Partners and Ravinia Capital Group, are co-developing the overall project. Bridge Investment Group is managing the Opportunity Zone strategy on behalf of the developers. The construction timeline was not disclosed. Merchants Capital secured $56 million in construction financing through Merchants Bank of Indiana, as well as $59 million in permanent financing through Freddie Mac Non-Low-Income Housing Tax Credit (LIHTC) forward commitments and Freddie Mac permanent loans. Upon completion, Parkside 8 and 10 will feature 230 residential units and approximately 14,000 square feet of retail space. Within the new properties, select units will be reserved for residents earning between 80 percent and 120 percent of area median income (AMI). The multifamily buildings are part of Parkside, a 3.1 million-square-foot master-planned development that will include between 1,500 and 2,000 residential units, up to 50,000 square feet of retail space and 860,000 square feet of office space. Parkside will also feature a one-acre park and a new pedestrian bridge that crosses over Kenilworth Avenue and Interstate 295. Additionally, Parkside offers four neighborhood …

February 9, 2022

Loans Multifamily Nevada Student Housing Western

Ready Capital Closes $29.6M Financing for Student Housing Property in Las Vegas

by Amy Works February 9, 2022

LAS VEGAS — Ready Capital National Bridge team has closed the financing for the acquisition, conversion, renovation and stabilization of a 156-unit student housing property in the University District submarket of Las Vegas. Upon acquisition, the undisclosed sponsor plans to reposition the asset from student housing to traditional multifamily through a rebranding and renovation program. Ready Capital closed the $29.6 million non-recourse, interest-only, floating-rate loan, which features a 36-month term and two extension options. Additionally, the loan includes a facility to provide future funding for capital expenditures.

February 9, 2022

Industrial Loans Midwest Ohio

Bloomfield Capital Provides $4M Bridge Loan for Cleveland Industrial Property

by Kristin Harlow February 9, 2022

CLEVELAND — Bloomfield Capital has provided a $4 million senior bridge loan for a 100,000-square-foot industrial property in Cleveland. The undisclosed borrower has owned the building for several years and plans to utilize the loan to finalize interior renovations and upgrades to the property, which is more than 90 percent leased to retail and food processing tenants. The borrower plans to refinance the bridge loan with a conventional loan in 12 months.

February 9, 2022

Georgia Loans Multifamily Southeast

Ready Capital Closes on $16.6M Acquisition Loan for Multifamily Portfolio in Metro Atlanta

by Julia Sanders February 9, 2022

MCDONOUGH, GA. — Ready Capital has closed on a $16.6 million acquisition loan for a 132-unit, two-property multifamily portfolio in McDonough, a southern suburb of Atlanta in Henry County. Upon acquisition, the unnamed sponsor will implement a capital improvement plan that includes renovating unit interiors, improving curb appeal and community amenities and addressing deferred maintenance. The non-recourse, interest-only, floating-rate loan features a 48-month term, one extension option and flexible prepayment.

February 9, 2022

Loans Multifamily Texas

Ready Capital Closes $41.3M Acquisition Loan for Houston Apartment Community

by Taylor Williams February 9, 2022

HOUSTON — New York City-based Ready Capital has closed a $41.3 million loan for the acquisition, renovation and stabilization of an unnamed, 449-unit apartment community in Houston’s Clear Lake submarket. The nonrecourse, interest-only loan carried a 36-month term, floating interest rate, two extension options and a facility to fund capital improvements. The name of the sponsor was not disclosed.

February 9, 2022

Industrial Loans New York Northeast Self-Storage

Talonvest Capital Arranges $27.4M Loan for Refinancing of Brooklyn Self-Storage Facility

by Taylor Williams February 9, 2022

NEW YORK CITY — Talonvest Capital Inc., a California-based boutique financial advisory firm, has arranged a $27.4 million loan for the refinancing of a self-storage facility located at 2727 Knapp St. in Brooklyn. Kim Bishop, Jim Davies, David DiRienzo, Tom Sherlock and Thalia Tovar of Talonvest Capital arranged the nonrecourse financing through an undisclosed investment management fund on behalf of the borrower, a partnership between Clark Investment Group, Metro Storage LLC and Goodfriend Self-Storage. The loan carried a three-year term, floating interest rate and two 12-month extension options.

February 9, 2022

Affordable Housing Loans Multifamily North Carolina Seniors Housing Southeast

KeyBank Provides $48M in Total Financing for Affordable Seniors Housing Project in Charlotte

by Julia Sanders February 8, 2022

CHARLOTTE, N.C. — KeyBank Real Estate Capital has provided a total of $48 million in financing for Eastway Park Apartments, a 132-unit affordable seniors housing development in Charlotte. The financing includes a $14.3 million construction loan, $8.4 million equity bridge loan and $13.3 million Fannie Mae mortgage-backed security (MBS) as Tax-Exempt Bond Collateral (MTEB). In addition, KeyBank subsidiary Key Community Development Corp. (KCDC) is investing $12 million of 4 percent Low-Income Housing Tax Credit (LIHTC) equity to support the development. The nonprofit borrower and developer, Harmony Housing, did not disclose a construction timeline for the project. Eastway Park will include age-restricted units for those 55 years of age and older. The property will serve households earning a range from 30 percent to 80 percent of area median income (AMI) and will be subject to an agreement ensuring ongoing affordability for at least 30 years. Out of the 132 units, 40 of the one-bedroom units will have project-based rental assistance and veterans’ preference by way of Veterans Affairs Supportive Housing (VASH) Vouchers from Inlivian, formerly known as Charlotte Housing Authority. The development will provide supportive services to tenants including a shuttle service. The development team has also contacted organizations such as …

February 8, 2022

Loans Multifamily Texas

Ready Capital Closes $13M Acquisition Loan for Houston Multifamily Property

by Taylor Williams February 8, 2022

HOUSTON — New York City-based Ready Capital has closed a $13 million loan for the acquisition, renovation and stabilization of an unnamed, 152-unit apartment complex in Houston’s Medical Center submarket. The nonrecourse, interest-only loan features a 36-month term, floating interest rate, two extension options and a facility to fund future capital improvements. The undisclosed sponsor plans to implement a value-add program.

February 8, 2022

Loans Multifamily New York Northeast

BHI Provides $33.1M Construction Loan for Brooklyn Multifamily Project

by Taylor Williams February 8, 2022

NEW YORK CITY — BHI, a full-service commercial bank that is the U.S. division of Israel’s Bank Hapoalim, has provided a $33.1 million construction loan for a multifamily project in Brooklyn. The borrower, CW Realty Group, plans to develop a 59-unit project with 30 parking spaces at 251 Front St. in the borough’s Vinegar Hill area. A completion date for the transit-served project was not disclosed.

February 8, 2022

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