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ROUND ROCK, TX-A San Diego-based private investor has secured more than $10 million by refinancing two multifamily properties in Central Texas. Both loans have 10-year terms and a 5.65% fixed-rate interest.
Larry Sneathern, senior vice president in the Dallas office of PNC ARCS, a PNC Real Estate Finance company based in Calabasas Hills, CA, says the borrower is an established client who has done more than $100 million of loans with him. "Most of my clients are long-term," he tells GlobeSt.com. "It's been a good year because of those relationships. It's getting to a point where so many of the properties roll every year."
Despite the problems in the mortgage industry, Sneathern says money is still available at very attractive rates. "Rates have been terrific. Under 6% money is still pretty cheap. It makes it a very good time to invest," he declares.
Sneathern arranged $5.72 million in financing for Country Place Apartments, a 152-unit, 7.5-acre complex at 1300 Sunrise Rd. The 29-year-old complex has a mix of one-bedroom and two-bedroom units renting from $610 to $835 a month.
Also, the borrower secured $4.71 million for the Westwind Apartments, a 126-unit complex at 1221 Chisholm Valley Dr. The 22-year-old, garden-style complex contains one-bedroom, two-bedroom and three-bedroom units renting from $525 to $900 a month.
Both loans were originated through Fannie Mae. Sneathern describes them as third-tier deals, meaning they had a loan-to-value ratio of 65% or less. Each property has an occupancy level above 90%.
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