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260-Unit Lakeview Apartments Sell Off Market

FORT WORTH-Today's financial turmoil doesn't block an investor from buying the 94%-leased complex. La Jolla Bank foots the bill with a $5.52-million loan at a 6.25% fixed rate.

By Connie Gore | Updated on September 19, 2008

[IMGCAP(1)]FORT WORTH-A 13-year owner with a high-interest loan has sold the 260-unit Lakeview Apartments in northwest Fort Worth to a Dallas investor in an off-market transaction. The buyer took the deal across the finish line with a $5.52-million loan at a 6.25% fixed-rate interest in a 45-day spin despite the turmoil in the capital markets.

La Jolla Bank provided the 80% loan-to-value financing for the 94%-leased complex, developed in 1995 on 16.24 acres at 6501 Shady Oaks Manor Dr. Sean P. Bushe, regional loan officer for the La Jolla, CA-based bank, tells GlobeSt.com that Quail Ridge Associates Ltd. from Maitland, FL had acquired the complex with a life company loan that had an 8% fixed-rate interest, but the underlying motive for the sale was the expiration of tax credits. “The real incentive in the deal was to get those tax credits. When they burned off, they wanted to sell,” he says, “and the loan was really encumbering the cash flow.”

[IMGCAP(2)]Bushe credits the quick-moving deal on the 30-year loan to the borrower being a repeat customer of La Jolla and the asset’s quality. “We’re still doing loans, but we’re more conservative now. We’re picky about what we lend on and what we roll into,” he says. “We’re being very selective and very cautious right now.”

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