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Thursday, 06 February 2020

NKF Writes $46Mln Freddie Loan, Arranges $11Mln of Preferred Equity for N.C. Apartments

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Commercial Real Estate Direct Staff Report

NKF Capital Markets has originated a $46 million Freddie Mac loan to help fund the acquisition of the 471-unit Hawthorne Six Forks apartment property in Raleigh, N.C.

The fixed-rate loan has a 10-year term.

As reported, Cedar Grove Capital bought the property for $66 million, or $140,127/unit, from Hawthorne Residential Partners of Greensboro, N.C., which had owned it since 2016. NKF also arranged an $11 million preferred equity investment for the deal from Related Fund Management, an affiliate of the Related Cos. Cedar Grove Capital is a Woodmere, N.Y., multifamily specialist.

The property previously was encumbered by a $41.75 million Freddie Mac loan that was securitized through FREMF, 2018-KF42. That loan paid a coupon pegged to Libor plus 187 basis points and was subject to a 1 percent prepayment penalty if it was paid off before 2024.

Hawthorne Six Forks was on track to generate $3.5 million of net operating income last year, according to servicer data compiled by Trepp LLC. That would give Cedar Grove Capital's purchase price a capitalization rate of 5.3 percent.

The complex, at 6317 Shanda Drive, was built in stages in the 1970s and 1980s and renovated three years ago. It has a mix of one-, two- and three-bedroom units with washers and dryers and patios or balconies. It also has a clubhouse, fitness center, dog park, swimming pool and barbecue area.

The property sits on 50 acres and is 10 miles from North Carolina State University.

Comments? E-mail Tim Casey or call him at (267) 397-3347.



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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Raleigh
  • States: North Carolina
  • Sector: Multifamily
  • Subject: Mortgages/Financing (MOR)
  • Company: Freddie Mac
  • Private: No
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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