New York, NY — June 21, 2022 — Lument announced today that it has closed an $11 million Fannie Mae DUS® loan to refinance Abby Glen Apartments, a 120-unit multifamily apartment community in Madison, Alabama. Managing Director Bryan Cullen led the transaction.
“The owners originally purchased the property in 2008 with a DUS loan, and they have improved the asset and operations significantly since then. This allowed us to offer a sizeable cash-out while still keeping the leverage conservative,” said Cullen. “The deal also benefited from good timing, as we were able to rate lock before the 10-year Treasury rate and all-in rate began their current upward trajectory.”
The loan was structured with a 10-year term, six years of interest only, and a 30-year amortization. It also featured a low, fixed interest rate and included substantial cash-out proceeds and waived replacement reserves and carve-outs.
“The timing of this deal provided other advantages as well,” continued Cullen. “In addition to locking in a favorable rate, the yield maintenance required to pay off the loan dropped by $110,000 due to the rapidly rising treasury yields in the period between the March rate lock and the April closing.”
Steven Gouletas, the sponsor of the transaction, added, “We had to deal with some unexpected issues that delayed our closing, including changing the title company, but we were able to work with the Lument team to make sure we could close within a day of the issues being resolved.”
Originally developed in 2001, Abby Glen is made up of nine one-story buildings, a rental office, and a single-family home, with units available furnished or unfurnished. Common amenities include a laundry facility, swimming pool, fire pit/grilling area, fitness center, dog park, and bocce court.
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, investment banking, and investment management solutions. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.