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Borrower Scoops Market Rate on Multifamily Deal

ORLANDO-Owner locks in mortgage at under 7.8% last November and closes the deal nine months later when rates are over 8%.

By Alex Finkelstein | Updated on July 30, 2000

LMC Ballantyne Inc. of Frostproof, FL is chuckling all the way to the bank these days. The company has a $15.5-million permanent loan at an under-7.8% interest rate on a 278-unit class A apartment project in the Ballantyne Planned Development of Charlotte, NC. The borrower locked in the low rate when the 60%-occupied venture was in the early stages of leaseup last November. ING Investment Management provided the loan brokered by the Orlando office of R.J. Twitty & Co. II Inc.”This early rate lock capability portrays the advantage life companies have over conduit lenders or agency lenders such as Fannie Mae and Freddie Mac,” R.J. Twitty vice president Chris Larkin tells GlobeSt.com. “Forward commitments may be available from these sources, but can be cumbersome and costly in comparison with a life company such as ING.” R.J. Twitty president Mark Findura, who co-brokered the transaction, tells GlobeSt.com “the same deal today would be over 8%.” The Orlando brokerage has $61 million in pending multifamily transactions and another $106.7 million in its closing pipeline. That inventory comprises debt, equity and sales transactions.. R.J. Twitty has financed or sold 18,000 apartments units in the last 12 months.

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