FLORIDA, SOUTH CAROLINA, AND TEXAS — Grandbridge Real Estate Capital has funded a $116 million, 16-property multifamily and student-housing portfolio in Florida, South Carolina and Texas. The undisclosed borrower is a Texas-based nonprofit that owns and manages affordable housing properties throughout the Southeast.
Phil Melton, senior vice president with Grandbridge, says his company and Fannie Mae worked closely to overcome a number of different obstacles to finalize the transaction.
“The new structure provides the borrower with immediate funds for deferred maintenance as well as ongoing cash to be used to maintain the properties’ assets at the highest possible level,” says Melton.
The loan carries a 10-year term, with the bonds at interest only for the first 5 years of the credit enhancement period, followed by a 35-year amortization schedule.
“The issuer, Capital Trust Agency, was extremely creative and supportive of the transaction and was a critical component to getting the transaction completed,” Melton says. “The borrower will also benefit from residual cash flow that had not been available with the prior bond issuance due to market conditions.”
The 16 properties were built between 1969 and 2002, and total 3,301 units. The average occupancy rate is 91 percent.
Melton says because the borrower wanted to refinance into a more cash-flow friendly vehicle, additional effort was put into making this transaction a success.
“The team worked tirelessly on this transaction in a volatile rate environment to get this transaction closed,” Melton continues. “This truly was a team effort to get this deal over the finish line.”