Finance Transaction of the Year - Regional
On behalf of LCOR, CBRE closed a $371 million debt and equity recapitalization of 2,700 unit, multi-state apartment portfolio, of which three of the assets ($200 million allocated value, 1,000 units) were located in MD and VA. The Sponsor was seeking to recapitalize their equity, complete a comprehensive renovation program, and place new debt. CBRE narrowed a list of thousands of equity investors to a targeted list of 75 domestic and foreign investors as the client’s focus was on finding a “like-minded” investor that would partner with the Client on future acquisitions to grow their platform. CBRE ultimately brought in two equity investors, and assisted the client in negotiating two favorable JV structures. CBRE marketed the individual loans to over 50 lenders as the JV determined the appropriate debt structure. CBRE provided multiple term sheets to the Sponsors on each deal, including over 75 quote terms. The MD & VA assets were financed with 75% LTV Freddie Mac financing totaling nearly $150M. The loans included pricing and loan-sizing benefits from completing a “green up” report and completing energy-efficient enhancements at the properties. The deal faced a final challenge after the election when interest rates shot up 80 basis points, prior to rate lock, but CBRE was able to keep the deal on track by restructuring the debt to provide lower spreads and shorter terms. Team members include David Webb, Jamie Butler, Maxi Thiels, Bill Roohan, Mike Muldowney, Mike Rudolph, Brian Margerum, and Martha Hastings.