All four properties are approximately 97% occupied. Three of the properties were used as collateral for 10-year, 60% loans with interest rates fixed at 5.79%. The fourth property was secured with a seven-year Capped ARM that with a starting interest rate of 4.1% and an internal cap of 7%.
The fixed-rate mortgages were for Manchester State Thomas in Dallas; Bay Court at Harbour Pointe in Mukilteo, WA; and Monte Vista Apartments in Littleton, CO. The ARM was for Hardrock Canyon in Austin, TX. The properties were unleveraged at the time of the financing.
"What we are seeing across the board is owners recognizing the favorable financing through agencies and being proactive about putting their multifamily properties to bed," Tupler tells GlobeSt.com. "Owners are looking at these financings to offset more difficult financings."
Manchester State Thomas is a 422-unit, class-A apartment development constructed during the 2000-2003 time period that secured a $45-million loan. Bay Court at Harbour Pointe is a 420-unit class-A property built in 1991 that secured a $26.4-million loan. Monte Vista Apartments is a 219-unit class-A community built in 1995 that secured a $13.7-million loan. Hardrock Canyon is a 391-unit class-A development built in 1995 that secured an $18.5-million loan.
In other Denver multifamily news, a 121-unit, HUD-subsidized six-property portfolio changed hands for $5.85 million. The properties are all located in the Capitol Hill and Uptown Neighborhoods of Denver. The price for the Section 8 properties works out to $48.413 per unit and $96.48 per square foot.
All-in-all, these properties consist of 52 studio units, 41 one-bedroom units, 20 two-bedroom units, and eight three-bedroom units in classically styled buildings with optimal locations, according to ARA. The street addresses of the properties are as follows: 1825 Logan St.; 701 East 14th Ave.; 1746 Clarkson St.; 1601 East 17th Ave.; 1920-1928 East 17th Ave. and 1901 East 16th Ave.
Apartment Realty Advisors' Denver-based associates Terrance Hunt and Shane Ozment represented Capitol Hill Portfolio LLC, the New York-based private buyer. The seller was Security Properties Inc.
"This deal was complex because it was a government subsidized scattered site with an average construction date of 1904 and six properties, all of which needed to be cross-collateralized," Hunt says. Ozment adds that the he and Hunt were able to secure a buyer who was very familiar with government subsidized properties, "which proved to be a key in closing this challenging transaction."
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