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Recent Closings

	Santa Rosa Mall A $20,370,000 first mortgage loan to recapitalize an enclosed regional mall located in Mary Esther, Florida in the Fort Walton Beach MSA. The property was delivered in 1976 and includes 733,000 SF, of which 533,000 SF serves as collateral. Merits of the deal include an attractive basis, strong going-in economics, and improving economic trends. The nonrecourse loan has a three-year initial term with two one-year extension options subject to performance hurdles.
	Rutherford Park A $25,475,000 first mortgage loan for the acquisition of a 13-building office portfolio totaling nearly 360,000 SF located in the greater Baltimore, Maryland area. The portfolio is conveniently situated within a short distance to several governmental agencies, including national/regional headquarter offices for the Social Security Administration, Centers for Medicare and Medicaid Services, and the FBI. Merits of the transaction include a diversified rent roll with several credit tenants, strong going-in economics, improving submarket occupancies and rents, and a highly qualified local operating partner. The nonrecourse loan has an initial term of three years with two one-year extension hurdles subject to performance hurdles.
	Chelsea Pointe and Vacaro Apartments A $14,750,000 first mortgage loan to acquire and renovate two Class B multifamily properties totaling 404 units located in the greater Norfolk, Virginia area. The sponsor identified the transaction as an attractive value-add opportunity to cure deferred maintenance by investing nearly $2,000,000 to re-skin the exterior, replace the HVAC units, renovate down units, and update common areas. The merits of the transaction include an attractive loan basis representing a significant discount to replacement cost, a strong local operator, and significant sponsor financial strength. The nonrecourse loan has an initial term of three years with two one-year extension options subject to performance hurdles.
	Chateaux Dijon A $16,125,000 first mortgage loan to acquire and renovate a 427-unit Class B multifamily asset located within the Galleria submarket of Houston, Texas. The sponsor identified this transaction as an attractive value-add opportunity to acquire a well-occupied asset from an owner that was shedding non-core properties. Capital improvements totaling approximately $4,750,000 are planned to improve the roof, property exterior and unit interiors, as well as install a national property management firm to improve operations. Merits of the transaction include a desirable location in the Galleria area, strong going-in economics, and modest full-funded loan exposure. The nonrecourse loan has an initial term of three years and includes two one-year extension options subject to performance hurdles.
	Office / Industrial Portfolio A $50,000,000 first-mortgage loan to refinance a four-asset, 725,000 square foot institutional-quality portfolio (three offices, one industrial property) located in Portland, Oregon; San Jose, California; Austin, Texas and Atlanta, Georgia. Merits of the transaction include a strong going-in debt service coverage ratio and a diversified portfolio from both a geographic and tenant perspective. The nonrecourse loan has an initial term of three years with two one-year extension options subject to performance hurdles as well as release provisions which allow for the sale of individual assets throughout the loan term.
	Broadstone Gramercy Park A $17,950,000 first mortgage loan to facilitate the acquisition and renovation of a two-building, 224-unit Class A multifamily property located in Houston, Texas. Although originally built and marketed as for-sale condominiums, bankruptcy proceedings prevented the project’s completion resulting in only one of the two buildings being available to residents. In addition to bringing all units to “lease-ready” status, capital improvements include interior/exterior repairs and installation of mechanical upgrades. The nonrecourse loan has an initial term of three years with two one-year extension options subject to performance hurdles. BBTREF’s loan structure includes interest and working capital reserves and allows for the sponsor to acquire the property’s lone individually-owned unit and collapse the condominium association in order to operate the asset as a 100 percent market rate rental property.
	Kendall Creek A $6,320,000 first mortgage loan for the acquisition and renovation of a 308-unit Class B multifamily property located in Norcross, Georgia. Although the subject property had been institutionally owned since 2001 and is in generally good condition, the property will undergo a moderate renovation plan to cure deferred maintenance and complete modest interior and exterior repairs, including landscaping upgrades. Merits of the transaction include a strong going-in occupancy rate, improving submarket fundamentals, and a low basis per unit relative to replacement cost. The nonrecourse loan has a term of 35 months.
	University Commons A $12,000,000 first mortgage loan for the acquisition and renovation of a 288-unit, 792-bed Class B student housing property located near The University of Texas in Austin. The subject property had suffered as a result of foreclosure proceedings and mismanagement which ultimately allowed the sponsor to acquire the asset at an attractive basis well below replacement cost. The loan facility included funding to cure deferred maintenance, complete exterior repairs, and upgrade the common area amenities. The nonrecourse loan has a three-year term with two one-year extension options subject to performance hurdles.
	Park on the Creek A $6,990,000 first mortgage loan for the acquisition and renovation of a 240-unit Class B multifamily property in McKinney, Texas, a suburb located approximately 30 miles north of Dallas. Originally developed as an affordable housing property, the sponsor plans to reposition the asset as a conventional market rate property upon expiration of the rent restrictions and after completion of upgrades to the property’s clubhouse/fitness facility and unit exteriors as well as bringing all units to “lease ready” condition. The merits of the transaction include an attractive loan basis representing a considerable discount to replacement cost on an asset located in a market experiencing strong population growth. The nonrecourse loan has a three-year term with two one-year extension options subject to performance thresholds.
	Abbington Heights A $7,400,000 first mortgage loan secured by a 274-unit Class B multifamily community located in Antioch, Tennessee, approximately 15 miles southeast of the Nashville CBD. The property had been capital starved before falling into foreclosure in early 2010 due to the previous owner being unable to refinance its debt. Upon acquisition, the property will undergo moderate renovations including exterior repairs, clubhouse improvements, landscaping upgrades, and interior and amenity upgrades. Merits of the transaction include an experienced local sponsor acquiring a well-occupied asset with large floor plans relative to the local competitors in a submarket with improving fundamentals. The nonrecourse loan has a three-year term.
	Yorktowne Apartments An $8,600,000 first mortgage loan to acquire and renovate a 236-unit multifamily property located in Durham, North Carolina. Due to the physical condition of the asset, the purchaser will cause the property to undergo an extensive renovation which will ultimately position the asset to effectively compete with other assets in the marketplace. Renovations will include replacement of roofs, windows, doors, and non-brick siding; landscaping updates, and upgrades and installation of energy efficient appliances and HVAC systems. The transaction’s merits include a modest fully-funded loan exposure, a seasoned sponsor with significant experience executing business plans of similar scope, and an asset located in a submarket with strong fundamentals. The nonrecourse loan has a three-year initial term with two one-year extension options subject to property performance thresholds.
	Lehigh Seniors A $6,300,000 first mortgage loan to acquire and renovate an 86-unit seniors housing property located in Allentown, Pennsylvania, approximately 60 miles north of Philadelphia. The sponsor will complete minor exterior and interior renovations, including conversion of the first floor assisted living units into a secure memory care wing. The merits of the transaction include an attractive loan exposure significantly below replacement cost, convenient access to the adjacent regional hospital, a strong going-in debt service coverage ratio, and an experienced nationwide operator of seniors housing properties. The nonrecourse loan has a three-year term with two one-year extension options subject to performance thresholds.
	Forestdale Apartments A $6,000,000 first mortgage loan secured by a 234-unit Class B multifamily property located in Burlington, North Carolina, approximately 20 miles east of the Greensboro CBD. The property’s condition and operations have recently suffered as a result of being over-leveraged with CMBS debt. Upon acquisition, the sponsor plans to cure the property’s minor exterior deferred maintenance, complete minor interior upgrades, improve the property’s common area amenities and bring all units to “lease ready” status. The subject transaction represents an opportunity for an experienced local Sponsor to acquire an asset at an attractive basis well below replacement cost in a submarket with improving fundamentals. The nonrecourse loan has a three-year term with two one-year extension options subject to performance hurdles.
	East Tampa Office Portfolio An $11,000,000 first mortgage loan secured by a two-building (270,000 square foot) office portfolio located in Tampa, Florida. Although a recent tenant relocation has had a significant impact on the historically well-occupied asset, portfolio operations provide positive going-in debt service coverage. In addition to its strong location and high-grade infrastructure, the transaction’s merits include an attractive basis, a fully-capitalized structure ensuring payment of broker commissions and tenant build-out packages, and an experienced local sponsor with a well-capitalized institutional equity partner. The nonrecourse loan has a three-year initial term with two one-year extension options as well as release provisions for each as well as release provisions which allow for the sale of each building throughout the loan term.
	University Place An $8,500,000 first mortgage loan for the acquisition and renovation of a 192-unit, 336-bed Class B student housing property located at the University of Louisiana – Lafayette. The subject property had suffered from mismanagement and lack of capital investment by its previous owner resulting in substantial deferred maintenance. Upon acquisition, the sponsor plans a comprehensive capital improvement program including an overhaul of all building exteriors; full unit interior upgrades; and a remodel of the property’s clubhouse, fitness center, leasing office. The nonrecourse loan has a three-year initial term with one one-year extension option subject to performance hurdles.