Multifamily Finance — Recent Closings

Capital One Closes $61.6 Million in Fannie Mae Loans to Refinance Memphis-Area and North Carolina Apartments

May 22, 2017 Bethesda, MD – Capital One announced today that it has provided a total of $61.6 million in Fannie Mae fixed rate loans to refinance two apartment properties for EBSCO Income Properties. These transactions mark EBSCO Income Properties ninth and tenth with Capital One.

A $25.6 million Fannie Mae fixed-rate loan was provided to refinance Lincoln at Wolfchase, a 408-unit apartment community in Cordova, Tennessee, a community 15 miles east of Memphis. The 12-year fixed-rate loan has three years of interest-only payments followed by amortization on a 30-year schedule. The loan was used to retire higher-interest debt and return equity to the borrower.

Laurel Springs Apartments, a 504-unit apartment community in High Point, the center of North Carolina’s furniture industry, received a $36 million Fannie Mae fixed-rate loan. The 12-year fixed-rate loan has four years of interest-only payments followed by amortization on a 30-year schedule. The loan was also used to retire higher-interest debt and return proceeds to the borrower. It was financed under Fannie Mae’s Green Building Certification program, which provides a substantially lower all-in interest rate for properties with a Fannie Mae-recognized energy certification.

“EBSCO has done a fantastic job with these properties since they were acquired by the company a few years ago. These transactions underscore the tremendous advantage for borrowers to develop a long-term relationship with the right lender,” Capital One said. “Over the last decade, EBSCO Income Properties has amassed a high-quality portfolio of properties in the Southeast. Our team's in-depth knowledge of their objectives allowed us to successfully close these deals and, in one, help EBSCO obtain financing through the Fannie Mae Green Building Certification program.”

EBSCO Income Properties is an owner, investor, and asset manager/operator of market-rate conventional multifamily housing.

“We’ve learned that we can count on the team at Capital One for timely, certain execution. Their performance was second to none,” said Leslie Yeilding, General Manager and Vice President at EBSCO Income Properties. “They are always responsive to our needs.”

Built in 1998, Lincoln at Wolfchase features a pool, clubhouse, grilling area, and covered parking and garages. Each unit has a full-sized washer/dryer and patio, balcony, or sunroom. After acquiring the property in 2015, EBSCO embarked on a campaign to increase its NOI. It completed a capital improvement plan focused on exterior renovations and enhanced the creditworthiness of its tenant population. For the last year, occupancy rate at Lincoln at Wolfchase has averaged more than 95 percent.

Constructed between 2001 and 2005, Laurel Springs Apartments features a clubhouse with fitness center, two swimming pools, and garages for tenants. All units have fully equipped kitchens, pantries, oversized closets and full size washer/dryer connections. After acquiring Laurel Springs as a bank real estate owned property in 2015, EBSCO embarked on a campaign to stabilize the property. At closing, occupancy exceeded 96 percent.

Capital One Bank’s Commercial Real Estate Group offers a comprehensive array of financing solutions for property owners and developers nationwide, including balance sheet and agency lending. Additional information can be found at www.capitalone.com/commercial/multifamily.


WHAT THEY SAY ABOUT US

“The Capital One CRE team consistently demonstrates expertise and passion—that commitment translates into creativity, responsiveness, and optimizing the timing and structure of each transaction.”

Michelle Lord, Vice President of Capital Markets, Fairfield Residential Company LLC

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*Beech Street is now Capital One Multifamily Finance and our commitment to customer service is even stronger.

Capital One Multifamily Finance is distinguished by its ability to structure multifamily mortgages customized to the precise needs of its clients. We are a Fannie Mae DUS® lender, a Freddie Mac lender, and a FHA HUD lender. Plus, we offer balance sheet financing backed by the full strength of Capital One Commercial Banking. You can count on our team of multifamily mortgage makers to deliver apartment financing smoothly, quickly, and with certainty.