ATLANTA, GA –  Preferred Apartment Communities announced the refinancing in the second quarter of 2017 of two Class A multifamily communities: Stone Creek Apartments located in Houston, Texas and Grandeville at Avalon Park located in Orlando, Florida.

PAC refinanced Stone Creek utilizing a non-recourse first mortgage HUD loan originated by PGIM Real Estate Finance.  The new loan package is approximately $20.6 million, bears interest at a fixed rate of 3.47% per annum, matures in July of 2052 and amortizes based on a 35-year schedule. 

PAC refinanced Avalon Park utilizing a non-recourse first mortgage loan from Freddie Mac originated by PGIM Real Estate Finance.  The new loan package is approximately $67.4 million, bears interest at a fixed rate of 3.98% per annum, matures in July of 2024 and amortizes based on a 30-year schedule.

“The refinancing of Stone Creek demonstrates PAC’s ability to make value in our assets and refinance them accretively.  The Stone Creek transaction allows PAC to pull out nearly $3.0 million in additional loan proceeds while lowering the total borrowing cost by over 1.25%.  We can then reinvest the additional proceeds generated to help provide us with further opportunities to buy well-located, newly constructed and high-quality multifamily communities in our core markets,” said John Isakson, Executive Vice President and Chief Capital Officer for PAC. “

Mr. Isakson added, “The refinancing of our loan at Avalon enables the Company to mitigate its interest rate risk resulting from our previous floating-rate loan and lock in a stable and low fixed interest rate.”

Preferred Apartment Communities was formed primarily to buy and operate multifamily properties in select targeted markets throughout the United States.  As part of its business strategy, they enter into forward buy contracts or buy options for to-be-built multifamily communities and we may make real estate related loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties. 

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NEW YORK, NY – After three weeks of consecutive increases, mortgage rates reversed course this week.  The benchmark 30-year fixed mortgage rate slipped to 4.13 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.28 discount and origination points.

The larger jumbo 30-year fixed inched up slightly to 4.11 percent, while the average 15-year fixed mortgage rate slipped to 3.33 percent. Adjustable mortgage rates saw decreases also, with the 5-year ARM dipping to 3.54 percent and the 10-year ARM creeping lower to 3.96 percent.  

Mortgage rates took a breather this week after rising 3 straight weeks previously. With news from the Mortgage Bankers Association that rising rates had frightened off borrowers, plunging applications 7.4 percent last week, a reprieve is excellent news for homebuyers and refinancers. Mortgage shoppers should also take some comfort from Federal Reserve Chair Janet Yellen’s assurances in her testimony on Capitol Hill Wednesday that inflation is moving at a moderate pace and that the key federal funds rate “is likely to remain below levels that prevailed in previous decades.”

At the current average 30-year fixed mortgage rate of 4.13 percent, the monthly payment for a $200,000 loan is $969.88.

SURVEY RESULTS

30-year fixed: 4.13% — down from 4.16% last week (avg. points: 0.24)

15-year fixed: 3.33% — up from 3.37% last week (avg. points: 0.28)

5/1 ARM: 3.54% — up from 3.58% last week (avg. points: 0.33)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets. For a full analysis of this week’s go in mortgage rates, go to www.bankrate.com

The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. This week, 32 percent of the panelists believe mortgage rates will rise over the next week or so; 42 percent reckon rates will fall; and 42percent believe rates will remain relatively unchanged in the coming week.

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BALTIMORE, MD – Lowe Enterprises Investors (LEI), in joint venture with a foreign investment client, has bought Jefferson Square at Washington Hill, a 304-unit urban infill apartment development with 20,000 square feet of street retail in East Baltimore. Located at 101 N. Wolfe St., the property is across the street from the vast Johns Hopkins University Hospital and medical campus and in the heart of the rapidly growing neighborhood.

“This premier property has an unparalleled location at the front door to the Johns Hopkins campus with its more than 20,000 employees. In addition, it is adjacent to The Science & Technology Park, a 31-acre corporate research campus,” said Brad Howe, co-CEO of LEI. “It provides not only the most convenient location for employees and students but also top-tier, modern residences, offering the most sought after on-site amenities.”

Jefferson Square at Washington Hill, completed in 2015, features mid-rise buildings that make street activity with both ground floor retail and some street-facing residences. The units are configured as studios, one- and two-bedrooms and served by ample on-site parking with a five-tale structure for residents, a one-tale garage for retail and numerous surface spots.

The units are designed with contemporary finishes such as flat panel cabinetry, granite counters with tile backsplash, stainless steel appliances and kitchen islands and full-size washer and dryer. Residences also offer patios, balconies or front stoops making an outdoor connection and capturing natural light. Abundant common areas and community spaces include an expansive clubroom with a variety of games, theater room, conference room, business center, fitness center and yoga space. Outdoor areas are equally diverse with a lounge-like seating area and fountain, serenity courtyard with fireplace, resort-style pool and outdoor grilling areas.

Retail space at Jefferson Square at Washington Hill provides residents and the neighborhood with community-serving retail and dining including CVS drugstore, BB&T bank, Urban BBQ and Ledo Pizza.

“There are many factors that make this a compelling investment. It’s new construction in an exceptional location walking distance to the area’s major employer and situated in a neighborhood that is continuing to grow and thrive,” noted Howe.

Jefferson Apartment Group will continue as manager of the apartments. LEI was represented in the transaction by John Gaghan and JLL represented the seller.

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