National lender The Bancorp Bank has funded $15.8 million in multifamily loans in the southeast for a Florida-based investor as the region continues to enjoy economic momentum.
Eastern Union senior loan consultant Judah Aderet, based in the company’s Howell, N.J. office, arranged the series of four transactions with Bancorp’s Jonathan Kohan. Greg Braciak underwrote the transaction on behalf of Bancorp. The bank funded up to 80 percent of the acquisition costs plus 100 percent of the renovation costs. The non-recourse, floating-rate loans carried a three-year initial term, with liberal prepayment terms and fees.
Aderet recently arranged a $7.8 million loan for the acquisition of two apartment communities in Camden County, Ga. Willow Way Apartments, a 60-unit residential community located at 145 N. Gross Road in Kingsland, is known as “Cardinal housing,” manufactured housing that was built in the 1980s by Cardinal Industries. Hickory Plantation is a 100-unit apartment community at 900 Dilworth Street in St. Mary’s, Ga.
Wicamica Creek Investments purchased another Kingsland, Ga. property, Ingleside Park Apartments, in late December 2017. Aderet arranged a $3.8 million loan for the purchase of the fully occupied 87-unit complex.
The fourth transaction in the package featured $4.2 million in financing for the early 2018 acquisition of Tyndall Pointe Apartments, comprising 72 units at 160 N. Fox Avenue in Callaway, Florida, a beachside suburb of Panama City.
According to Aderet, the borrower, a long-time private investor active in the Florida market for three decades, was very pleased with the financing process. He plans to immediately start on property renovations, as the loans fully fund the planned capital expenditures.
“The maturing apartment investment market has continued to drive investors towards secondary and tertiary areas,” says Aderet. “Bancorp was confident in our assessment that the properties are in markets with educated workforces, attractive lifestyle amenities and healthy employment climates where investors can still find opportunities with significant upside potential through capital improvement and repositioning strategies.
“We believe these outer-ring suburban locations and properties will continue to attract multifamily capital as the yield premium continues to show resilience.”
“The above loans represent Bancorp’s continued foray into the nationwide multifamily housing market with a competitive small balance bridge-to-agency
