WETHERSFIELD, CT-Beech Street Capital has revealed EXCLUSIVELY to GlobeSt.com that it closed a $30.5 million Fannie Mae conventional loan to refinance the Village of Wethersfield, a 294-unit complex in Wethersfield, part of the Hartford MSA. Brian Sykes, SVP of originations in Beech Street's Boston office, originated the transaction. The borrower, the Scully Co., is a repeat customer of Beech Street, having financed two transactions with the company in 2012.
“The borrower was in the market for a loan that could produce the maximum proceeds at the lowest possible rate,” Sykes says in a statement. “Despite intense competition from local banks. Beech Street and Fannie Mae found a seven-year pricing structure that landed the business. When Fannie likes a deal, it is clearly willing to proceed aggressively to secure it.”
Because the loan proceeds were ultimately dependent on the final value, Beech Street's underwriting team worked closely with the appraiser to ensure that every effort was made to support a final appraised value that worked for the borrower, the company explains in its announcement, which was obtained by GlobeSt.com.
To secure a low interest rate, Beech Street's capital markets desk scoured the market and found just the right MBS investor and locked in a seven-year rate. The fixed-rate loan has a seven-year term, 6.5 years of yield maintenance, and 30 years of amortization, payable on an actual/360 basis.
“We were impressed by the effort and ingenuity Beech Street displayed in structuring a deal that would work for us,” says James Scully, a principal in the Philadelphia-based Scully Co.—which owns properties in Connecticut, Pennsylvania, New Jersey and Florida.
The Scully Company has owned the Village at Wethersfield since 1999 and has maintained it in excellent condition. The fifteen garden-style apartment buildings are grouped around a pool, clubhouse, fitness center, and tennis court. The Scully Company has upgraded kitchens with new counters and cabinets as the units turn over.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
