COVINGTON, Ga. and ROBINSONVILLE, Miss. and DOTHAN, Ala., April 29, 2019 /PRNewswire/ -- A joint venture partnership between Auerbach Opportunity Fund I, LP and Blue Magma Residential has secured a $35.4 million loan with Greystone under the Fannie Mae Delegated Underwriting and Servicing (DUS) program to refinance its existing acquisition loan with Ladder Capital for a three-property, 604-unit multifamily portfolio in the Southeast, originally purchased in December 2017.
The 10-year fixed rate loan represents 75% loan-to-value for the portfolio. Financing was arranged by Eyzenberg & Company's Jeff Conti and Mila Babenko on behalf of the borrowers.
The portfolio is comprised of three two-story garden-style rental apartment properties totaling 565,282 SF. The portfolio includes the 188-unit Park at Arlington in Covington, GA.; the 232-unit Park at Brighton in Robinsonville, MI.; and the 184-unit Park at Ashburn in Dothan, AL.
Since its acquisition, Sponsorship has invested over $2 million in capital improvements into the properties. The exterior renovations / common areas have been substantially competed at all three complexes, in addition to over 100 units at the Park at Arlington and the Park at Brighton. The overall strategy is to continue raise rents to market rate by continuing unit renovations, while also improving occupancy, currently at approximately 92% portfolio-wide, with anticipated stabilization in the next eighteen months.
Of the refinance, Peter Auerbach, CEO of Auerbach Funds, stated, "We are extremely proud of the work we have done to date to create a sense of community at each of these properties and empower our residents to live with dignity and pride, and the value creation achieved thus far is a reflection of that."
Reuven Oded, CEO of Blue Magma, added, "In a continuation of our strong relationships with Greystone and Eyzenberg, we are glad to have found a loan product that fits well with our business plan for the portfolio, and we look forward to continuing to realize the full potential of these properties."
Auerbach Funds and Blue Magma own, in partnership with each other, over 1,600 apartment units in four states.
Contact: Diana Davidson, (646) 992-4670, [email protected]
SOURCE Auerbach Funds