Charlotte, N.C. — Grandbridge Real Estate Capital recently closed three multifamily transactions totaling more than $40.4 million.  Grandbridge’s Jacksonville, Fla., office originated and closed an $8,439,000 acquisition loan secured by Summer Oak at St. John’s Apartments, a 400-unit multifamily community in Jacksonville, Florida.  Funding for the transaction was provided by Freddie Mac under its Capital Markets Execution (CME) loan program with an interest rate of 5.65 percent and was underwritten with a 70 percent loan-to-value.

“The borrower purchased the property for $12.4 million which represents a 40 percent discount from its previous trade of $20.55 million in 2005.  Additionally, the borrower was an experienced multifamily owner/operator who invested 30 percent cash equity into the transaction, including two years’ of upfront funded replacement reserves.  Summer Oak at St. John’s Apartments is located in Jacksonville, Fla., which has experienced significant economic challenges in the past two years (including double-digit unemployment) resulting in a drastic decrease in the overall multifamily market occupancies from about 93 percent in the first quarter of  2007 to approximately 85 percent in the first quarter of 2010.  However, this property benefits from an excellent riverfront location with high visibility and competitive market rents that helped stabilize the property in an otherwise unstable market.  Those facts, combined with an experienced sponsor with a significant equity investment in the deal, helped overcome the market challenges,” detailed Grandbridge Assistant Vice President Ryan Whitaker.

Grandbridge’s Houston office originated and closed a $13,827,200 loan secured by Oak Hollow Apartments, a 277-unit multifamily community in Southaven, Mississippi.  This transaction was a refinance of an existing HUD-insured loan under Section 221(d)(4) pursuant to Section 223(a)(7).  The terms of this FHA refinance lowered the borrower’s interest rate and extended the loan term to 40 years, providing notable debt service savings.  (Property photo available)

Senior Vice President Mike Ortlip of Grandbridge’s Charlotte, N.C. office and Houston-based Vice President Greg Young co-originated and closed an $18,147,500 loan secured by Alta Vista Ridge Apartments in Lewisville, Texas; located within the Dallas MSA.  The original bank construction loan of the 270-unit property was refinanced under FHA Section 223(f) in accordance with the temporary authority for FHA Multifamily hubs to process waiver requests pertaining to the Three-Year Rule for Section 223(f) apartments.  The transaction closed with a 35-year term and a 35-year amortization period.  (Property photo available)

Charlotte, N.C.-based Grandbridge has a broad investor base that includes insurance companies, pension fund advisors, commercial banks and capital markets investors, as well as a proprietary lending platform.

The company is a Freddie Mac Program Plus® Seller/Servicer and Targeted Affordable Housing lender and a Fannie Mae Delegated Underwriting and Servicing (DUS®) lender. Grandbridge is also a MAP multifamily and LEAN healthcare approved participant in products insured by the Federal Housing Administration (FHA).

The company arranges permanent commercial and multifamily real estate loans; services loan portfolios; and provides asset and portfolio management, as well as real estate brokerage services nationwide. Grandbridge has a servicing portfolio of about $24.5 billion representing nearly 100 capital providers.  For more information about Grandbridge and its locations, visit www.gbrecap.com.

At Dec. 31, BB&T Corporation had $165.8 billion in assets and is one of the nation’s largest financial holding companies.  Founded in 1872, it operates more than 1,800 financial centers in 12 states and Washington, D.C. More information about the company is available at BBT.com.

BUSINESS CONTACT
Thomas S. Dennard
Grandbridge CEO    
(704) 379-6910
tdennard@gbrecap.com                                        

MEDIA CONTACT
Patricia Muse
Vice President | Marketing
(205) 978-1139
pmuse@gbrecap.com