According to CBRE Melody, financing was arranged through Freddie Mac's Light Rehab Program on behalf of Advenir@Foxmoor LLC. The deal has a loan-to-value ratio approaching 90% and features a seven-year term with interest-only payments. Charles J. Foschini, vice chairman, and Christopher Apone, vice president, of CBRE Melody's South Florida office, handled the transaction with Christian R. Lee, vice chairman of CB Richard Ellis' institutional group, and W. Tracy Kennedy, vice chairman of CBRE Melody's Austin office.
At the time of purchase last month, Will Balthrope, senior director in the Dallas office of Marcus & Millichap Real Estate Investment Services, reported Advenir plans to renovate the infill property and hold it for five to seven years. While he said the asset already showed cash flow, according to Foschini, the borrower expects to get markedly higher rents through repositioning the property. Rents for the one- and two-bedroom units, which range from 400 sf to 989 sf, are currently advertised at $439 to $789 per month. The property was 94% leased at the time of sale.
Despite recent headlines about Freddie Mac's problems, Foschini tells GlobeSt.com, there were no obstacles to getting financing. "They fully committed and funded this transaction without any issues whatsoever," he says. "I believe the lender and borrower alike recognized the uniqueness of the location and the ability under skillful management to bring the asset to a new class and level."
According to Advenir's website, the company is currently seeking investors to buy in on the property. Though the complex is categorized as Class C due to its 1970s construction, Advenir refers to it as Class B, calling it a well-maintained community that is very competitive for its age and class. Amenities include a fitness center, swimming pool, business center, clubhouse with full kitchen and multiple laundry facilities. Unit features include dishwashers, wood-burning fireplaces, walk-in closets, ceiling fans and private patios or balconies.
The investor prospectus emphasizes the property's location in the heart of a major commercial redevelopment area, where some 3,200 apartment units are being demolished to make room for new multi-use development. The sponsor says the massive reduction of supply in the immediate area bodes well for apartment demand, while the new development will substantially increase Foxmoor's land value.
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