BIRMINGHAM, AL—Beech Street Capital, a Capital One company, has closed a $4.5 million fixed loan to refinance the leasehold interest in University Place Apartments, a mid-rise building here containing 139 apartments and approximately 8,500 square feet of office space.

Chad Hagwood, senior vice president of originations in Beech Street's Birmingham office, originated the transaction and Brandon Pate managed the underwriting and closing of the deal. The borrower was an affiliate of Engel Realty Company, one of Birmingham's oldest and largest real estate firms, with a primary focus on commercial and multifamily real estate.
“Engel sought to retire an existing bank loan and pay all transactions costs, and use equity from the property for capital improvements to the building's office space” Hagwood says. Located on the University of Alabama campus, University Place was built in 1959 as a hotel. Engel acquired the property in 1997 and converted it to apartments the next year. “We were once again impressed with the way Chad and his team at Beech Street found the solution that best fit our needs,” says, William Butler, president at Engel. “And we appreciated their ability to close the deal in 45 days. Once again, Chad and his team at Beech Street delivered the loan proceeds and terms that were proposed.”
University Place is a well-maintained property, attracting a mix of University faculty, residents and interns, researchers, and graduate students as well as retirees and local business people. Amenities include a swimming pool, clubhouse, fitness center, gated parking, security, and a laundry room. Furniture is provided by management. Engel Realty itself uses 8,500 square feet of office space at the property as its corporate headquarters.
This loan has a fixed rate with a 10-year term, and a 20 year of amortization schedule.