FORT LAUDERDALE, FL-Multifamily financing deals are getting done across the South Florida--and experts say more capital source are available for investors. Although Freddie Mac and Fannie Mae still offer advantages, there are other attractive options on the market.
One of the latest examples is Wilton Tower Apartments in Wilton Manors. The buyer closed on an $8.5 million first mortgage. Mark Grace, vice president of NorthMarq Capital’s Los Angeles regional office arranged the financing for the 150-unit multifamily property.
Financing was based on a five-year fixed term with two years of interest only and a 30-year amortization schedule, open for prepayment in years four and five of the loan term, 4.65% rate. A cash out refinance and was arranged by NorthMarq through its affiliate AmeriSphere Multifamily Finance, a Fannie Mae lender.
Charles J. Foschini of CB Richard Ellis’ Debt & Equity Finance and Institutional Group in Miami, tells GlobeSt.com in the past six months has seen financing on strong deals with life companies, CMBS lenders and a variety of structured lenders. As he sees it, that’s a bellwether sign of a recovering market.
“The structured lenders are financing today based on tomorrow’s rent and rent growth, and that has created a very competitive market for all the lenders,” Foschini says. “The agencies, however, are backed by government credit and as a result continue to be more aggressive than any other market rate lender and somewhat immune to some of the ‘international finance crisis’ that we continue to face in greater global economic markets.”
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