Nashville doesn’t want to be left out of the multifamily discussion, something that’s evidenced by Beech Street Capital (edit: now Capital One) closing on a deal worth almost $92.6 million in Freddie Mac Capital Markets Execution loans that involved the acquisition of a three-property multifamily portfolio spanning a thousand units.
One of the people behind the transaction is Aaron Birnbaum, of Meridian Capital Group, the firm used by Beech Street Capital to finance the deal as part of their correspondent relationship. According to Grace Huebscher, the president and CEO at Beech Street Capital, Beech Street and Freddie Mac really stepped up to provide certainty of execution and did so on very competitive terms. In less than 45 days, the lender was able to rate, lock and close the deal to coincide with the prior loan maturities. Having the deal done means mobilizing the team quickly to settle site visits and be engaged with third parties to speed up the process. The fixed rate of these multifamily loans has a 7-year term with 2 years interest only.
All three multifamily properties: Cherry Creek Apartments in Hermitage, offering 627 units; Arbors at Brentwood Apartments, consisting 346 units; and Cambridge at Hickory Hollow in Antioch, consisting of 360 units, are located within Nashville MSA.
According to Huebscher, beyond this deal, multifamily acquisitions picked up over the past year and while demands for rental continues to be strong and vacancies low, the overall lack of new supply is resulting in insignificant competition in many markets where active clients lose their bids due to the increased competition from the investors. She also points the maturing loans as a contributing factor in the deal. In fact, acquisitions represented about 20% of Beech Street Capital’s business in 2011 while this year’s number is up to about 35%. Truly, more investors and clients in the local markets are entering the multifamily space.
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