308-unit Class A Apartments

$37,708,000 Avoided Bridge Debt & Rate Locked Loan Prior to Achieving Stabilized Occupancy

Location: Atlanta, GA
Loan Amount: $37,708,000
Term: 15 Years Firm
Amortization: 5 years interest only – then 30-year amortization
Execution: Agency

This complicated acquisition was closed in under 60 days in order to meet the timeline of the seller.

The complicating factors included the following: the property was in lease-up during the acquisition, there was a complicated real estate tax abatement through a municipal bond structure, and it was a 1031 reverse exchange. The sponsor took advantage of Fannie Mae’s pre-stabilization program, allowing the sponsor to acquire this property during lease-up but take full advantage of the anticipated stabilized pro forma for underwriting purposes. This structure avoided the need for bridge debt and allowed the sponsor to rate lock the acquisition loan for 15 years prior to achieving stabilized occupancy.