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TODAY’S DEALS: NorthMarq Capital Arranges $35M Mortgage for 258-Unit Student Housing Property, and Other Transactions
Published: October 10, 2008
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By Anuradha Kher, Online News Editor, MHN and Michael Fickes, Contributing Correspondent, CPN
Gainesville, Fla.--NorthMarq Capital Inc.’s Atlanta regional office arranged first mortgage financing of $35 million for The Woodlands of Gainesville (pictured), a 258-unit student housing facility, located in Gainesville, Fla.
Financing was based on a seven-year term and a 30-year amortization schedule and was arranged for the borrower by NorthMarq through its seller-servicer relationship with Freddie Mac.
$100M JV to Acquire, Auction Builder Inventories, Bank Foreclosures
Los Angeles--Two real estate investment firms, Los Angeles-based LandCap Partners and Kennedy Wilson of Beverly Hills, have contributed $100 million in equity to a joint venture that plans to purchase newly completed or partially completed homes and condominiums in inventories held by builders and financial institutions.
Aiming to hold properties no longer than a year, the venture will re-sell the properties, generally at auction through an affiliate of Kennedy Wilson.
“A transaction might consist of 20, 30 or some number of units at one project or 10 units at 10 different projects owned by the same seller,” Stuart Cramer, senior managing director with Kennedy Wilson, tells CPN.
Cramer adds that the business model would aim at a return of 10 percent or above the cost of the property and the cost of holding, maintaining and marketing the property.
“It’s an interesting business model that takes advantage of the current environment,” says Stephen Blank, a senior fellow, finance with the Washington, D.C.-based Urban Land Institute (ULI). “There certainly are risks involved in carrying vacant houses. You have to maintain them, pay operating expenses and taxes and preserve the value of the assets. But it is a sound intellectual business model.”
Industry analysts estimate that builders and lenders today are holding more than 1.5 million completed residences.
The joint venture is just LandCap’s third initiative. Formed in November of last year, the firm seeks investments in residential land ranging from unimproved land parcels to finished single-family lots. The partnership sells or options land to homebuilders, provides mortgage loans and engages in joint ventures with other real estate companies.
Arbor Provides $4M Refi Loan to 2667-Unit Townhouse Property
Arbor Commercial Funding LLC recently completed funding of a $4 million loan under the Fannie Mae Co-op product line to refinance the 267-unit complex known as Hickory Hollow Cooperative Townhouses in Wayne, Mich.
The 30-year loan amortizes on a 30-year schedule and carries a note rate of 7.14 percent.
“The members of this cooperative have big plans for many capital improvements to their property,” says Michael Jehle, director in Arbor’s Michigan lending office. “By decoupling their HUD 236 mortgage, Arbor was able to provide, in part, these renovation funds with a long term, attractive fixed rate loan.”
