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ATLANTA-Small metro class C multifamily projects, needing capital for new and existing properties, have received a total $30.3 million in loans from two separate lenders.

Locally based Sovereign Capital arranged a $10-million loan for MSB Apartments LLC to complete the $10.5-million acquisition of the distressed 306-unit Morningside Apartments at 3480 Morningside Village, Doraville. The loan-to-value factor was over 95.22%.

Fannie Mae foreclosed on Morningside in 2005. At that time, the property was operating at less than 82% and four months prior to the foreclosure was only at 60%, says Chris B. Johnston, managing director of Sovereign's Atlanta office. "Limited equity resources of this entrepreneurial, locally based borrower was clearly a challenge," Johnston says. However, Sovereign crafted a financial plan in only 24 days that helped the borrower take advantage of "this value added opportunity," the mortgage banker says.