(Carl Cronan is editor of Real Estate Florida.)
ORLANDO-The local office of CB Richard Ellis arranged $14 million in financing for the acquisition of Stonebrook Apartment Homes in suburban Sanford. The 10-year loan includes a fixed rate of 5.62% and 30-year amortization, with 78% loan to value.
Stonebrook Orlando Apartments LLC, a private venture between Canadian and Florida-based investors, paid $18 million for the 356-unit garden-style apartment complex. The seller was Denver-based Aimco Properties LP.
The transaction closed on time by the end of April, 35 days from the application date, according to Dennis Jimenez, vice president with CBRE's Capital Markets Group in Orlando. Apart from a few last-minute technical problems, the deal went rather smoothly, he says.
"The deal was very advantageous to the buyer," Jimenez tells GlobeSt.com, noting that the units sold for roughly $50,600 each. "It was a very challenging transaction, but it wasn't anyone's fault. There were just some things that had to be resolved."
The borrower went with Freddie Mac's fairly new Capital Markets Execution loan program, which offers the added benefit of future secondary financing along with a lower interest rate, Jimenez says. Despite the challenging capital markets, he says, Freddie Mac continues to offer competitive terms for multifamily loans in Florida and across the US.
"Financing is pretty easy to obtain and Freddie Mac is very active," Jimenez says. The challenge lately is the wide gap in pricing expectations between buyers and sellers, though both sides appear to be more willing to come to terms lately, he says.
Stonebrook Apartment Homes, located at 1000 Stonebrook Drive, totals 352,200 square feet and was built in two phases in 1991 and 2001. Asking rents under Aimco's ownership ranged from $600 to at least $900 per month for one- to three-bedroom units in the class B complex.
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