MIAMI—1550 Brickell, a 138-unit multifamily complex, has secured an $18 million Fannie Mae conventional refinance loan. Beech Street Capital provided the loan.
Patrick Boyle, vice president based out of Beech Street’s Baltimore, Md. office, originated the transaction. The borrower, Green Development Group, pushed to rate lock quickly in order to leverage low interest rates.
The transaction rate locked just 12 business days after the application was signed. The fixed-rate loan has a 10-year term with 9.5 years yield maintenance, and amortization of 30 years payable on an actual/360 basis.
“If I had to sum up our approach in just a sentence, I would say that we go above and beyond to satisfy our clients and work to build long-term relationships with them,” Grace Huebscher, Beech Street’s president and CEO, said in a statement. “By any standard, Patrick and his team achieved that goal.”
Green developed the multifamily complex in 1987-1988 and has owned and managed it since then. The multifamily property offers two five-story apartment buildings located just one block from Biscayne Bay in Downtown Miami.
“We understood that our client was intent on taking advantage of historic low rates and wanted to rate lock the deal as quickly as possible,” Boyle said in a statement. “The team finalized third party reports faster than I have ever seen and we were able to execute the loan as an early rate lock transaction. It’s fair to say that the outstanding condition of the property and our borrower’s obvious commitment to the transaction made our job much easier.”
After sustaining wind damage during Hurricane Wilma in October 2005, Green took not only repaired the damage, the firm also completed a full-scale $8 million renovation of the multifamily property. Green also built a new clubhouse/leasing center offering tenants a glass-enclosed fitness center, a sitting area with a flat-screen television, and a coffee bar with free Wi-Fi access.
“For multifamily finance, this deal was the absolutely status quo right now in terms of the interest rate,” Jason Shapiro, managing director of Aztec Group, tells GlobeSt.com. “It’s inevitable that interest rates will rise. The question is by how much and when. It’s been an extended period of relatively low rates and particularly with multifamily financing.”
Despite issues in the Eurozone, Shapiro doesn’t see any trepidation in the market, especially not with multifamily financing stateside. Like others, he’s keeping his eye on what happens after the 2012 presidential election and what changes in the Eurozone.
“I think the market will continue, at least in terms of multifamily, transactional volume and finance, to continue the way it is through the end of the year,” Shapiro says. “My instinct tells me some of the other lenders outside of Fannie and Freddie will become a little more competitive in terms of financing multifamily properties, like life insurance companies and pension funds.”
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