Birmingham, Ala. (Jan. 16, 2018) – Berkadia has secured a $20.695 million loan for the acquisition of Chace Lake Villas, a 264-unit garden-style multifamily community in Birmingham, Alabama. Senior Managing Director Charles Foschini and Managing Director Christopher Apone of Berkadia’s South Florida office arranged the loan on behalf of the borrower, MAG Chace Lake LLC.
Fannie Mae originated the fixed-rate loan, with a 12-year term and five years of interest only, at a 75 percent loan to value. The property was 97 percent occupied at the time of the sale.
“Chace Lake Villas represented a clear-cut opportunity to invest in an asset with quality construction and an in-place value-add campaign, creating significant room for revenue growth for the investor,” said Mr. Foschini.
“MAG was able to capitalize on very attractive Fannie Mae 12-year fixed rate financing with a five-year interest only period that allows for more than ample cash flow to fund capital improvements and enjoy stable returns for a long term period,” added Mr. Apone. “Furthermore, the extended interest only period and assumption/supplemental capability of the Fannie Mae loan provides exceptional flexibility should the borrower choose to hold the asset long term or sell within the first five years of the hold period. Fannie Mae views Chace Lake Villas as an exceptional opportunity to lend on a well-located, high-quality asset while at the same time forging a new relationship with an active and well-capitalized sponsor.”
Built in 1996, Chace Lakes is located at 98 Chace Lake Parkway in Birmingham, within the Riverchase PUD, a master-planned residential and commercial development that serves as one of Birmingham’s largest economic drivers. Within the development is the Riverchase Business Park, which includes several publicly traded companies such as Blue Cross Blue Shield of Alabama (3,570 jobs), Regions Bank (1,800 jobs), and AT&T (1,100 jobs). The development now retains over 10,000 jobs and offers the submarket an extremely stable tenant base with solid income levels.
Chace Lake villas features one-, two and three-bedroom units throughout 24 low-rise buildings. Units include fully equipped kitchens, washer and dryer connections, bay windows, walk-in closets, wood-burning fireplaces and vaulted ceilings. Community amenities include a 24-hour fitness center, resort-style swimming pool, clothing care center, business center, lighted tennis court, and car care center.