Apartment Buyers Lock in Under-6% Rate

ORLANDO-Playing the rate game and trying to guess when Treasury yields will go up or down isn’t what most mortgage bankers generally recommend to prospective buyers of commercial properties.

But Todd F. Cohen, vice president of Primary Capital’s local office, gauged recent bond market swings and was able to lock in under-6% loan interest rates for two clients on separate multifamily investment contracts aggregately valued at $11.4 million. The acquisition loans totaled $8.9 million.

For Allen Perri Properties LLC and Perri Allen Properties LLC, Cohen locked in a 5.9% interest rate on an 80% loan-to-value financing from Fannie Mae on the $4-million purchase of the 11-year-old, 95%-occupied Stone Cove I and II apartments in St. Augustine, FL. SE Residential East LLC sold the 86-unit property, one mile from the ocean, for $46,512 per unit. The loan carries a 30-year amortization. Buyer and seller are from New York.