Funding of Nearly $100M Gets Portfolio Over the Finishing Line | GlobeSt

Phoenix Community Sells for $25M | Multi-Housing News

SEATTLE – March 1, 2019 – Berkadia today announced the origination of a $97.85 million Fannie Mae Credit Facility, which provided permanent fixed-rate financing for the acquisition of five multifamily assets on behalf of Investors Capital Group, LLC (ICG). Managing Director Jeff Stuart of Berkadia’s Seattle office handled the transaction.

The structured facility features five tranches of fixed-rate debt with 10- and 12-year terms, half-term interest-only, a 30-year amortization and loan-to-value constraints that allow for 75 to 80 percent ratios. The rates for the five tranches range from 4.34 to 5.15 percent and were locked over four months. The facility allows future additions, substitutions and flexible prepayment.

“Everyone involved in this transaction did a great job of working together to get these five-acquisitions across the finish line,” said Stuart. “Fannie Mae’s structured finance team and ICG’s acquisition team demonstrated exemplary teamwork to get the facility structured and closed. This is an advantageous facility for ICG’s 2018 Apartment Fund, which raised $61 million in equity to acquire 1,012 multifamily units across five properties.”

ICG is a Seattle-based real estate investment firm with a portfolio of over 6,000 apartment units in the western United States. ICG has acquired over $1 billion in multifamily investments since 2001.

The five properties acquired are in four western states: Washington, Idaho, Utah and Arizona. Avenue5 Residential, a Seattle-based residential management company with a national footprint, will manage the portfolio. Avenue5 manages over 50,000 units nationwide.

The properties in the portfolio include:

• Greentree Apartments, located in Glendale, Arizona, closed in February 2019 and is located at 5959 W. Greenway Road. The community is near shopping and the Peoria Sports Complex and is comprised of one- and two-bedroom apartments, many of which are renovated with new cabinetry, granite countertops and stainless-steel appliances. On-site amenities include a swimming pool, a fitness center and a spa.
• Juniper Meadows, located in Phoenix, Arizona, closed in February 2019 and is located at 16804 N. 42^nd The community affords convenient access to the area’s shopping, schools and parks and is comprised of two-bedroom, two-bath apartment homes with nine-foot ceilings. Many of the homes are renovated with new cabinetry, granite countertops and stainless-steel appliances.
• The Crossings at Chapel Hill in Pasco, Washington closed in January 2019 and offers spacious homes in the center of the Tri-Cities. Built in 2006, the community features sophisticated one-, two- and three-bedroom units with vaulted ceilings, double paned windows, stainless-steel appliances and walk-in closets. The property also includes a resort style pool, a 24-hour fitness center and a year-round jacuzzi.
• Eagles Landing Apartments closed in December 2018 and is located at 2785 Eagle Drive in Ammon, Idaho. The community offers close proximity to shopping, outdoor recreation areas and entertainment venues and features one-, two- and three-bedroom units with range stoves, fireplaces and walk-in closets. On-site amenities include a pool, a jacuzzi, a barbeque area, a 24-hour fitness center, a billiards room, two playgrounds and a basketball court.
• The Falls at Canyon Rim closed in November 2018 and is located in Ogden, Utah. The community is within walking distance to premier neighborhood shopping and entertainment and affords convenient access to Hill Air Force Base and Weber State University and Medical Centers. The property offers well-maintained one-, two- and three-bedroom units with air-conditioning, balconies and ceiling fans. On-site amenities include basketball courts and covered parking.