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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







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




cppichart FP



CMBS 2.0 Spreads


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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