Thursday, June 21, 2012
Beech Street Capital Closes $21.25 Million Fannie Mae Loan to Acquire Class A Orlando, FL Apartments
BETHESDA, MD – Beech Street Capital, LLC announced it has provided a $21.25 million Fannie Mae conventional loan for the acquisition of Vista at Lost Lake (top left photo), a Class A, 276-unit apartment complex in Clermont, Florida—located to the northwest of Orlando.
The transaction was originated by Jacob Katz and was financed by Beech Street Capital.
The repeat borrower was actively looking to expand into the greater Orlando market with the purchase of Vista at Lost Lake, while taking advantage of the low interest rate environment.
Having previously secured financing for the borrower in June 2011 to refinance a 166-unit apartment complex in Zionsville, Indiana, Beech Street was familiar with the borrower’s expectations.
“Constant communication between the Beech Street team and the sponsors allowed for a seamless execution,” states Katz. “Beech Street was able to meet the client’s needs by providing a very low rate while meeting the acquisition timeline.”
Built in 2007, Vista at Lost Lake is situated in a newer area of development within the Clermont community neighboring other residential, retail, and office development, including a Wal-Mart Supercenter located next door.
Amenities include gated entry, free surface parking, resort-style swimming pool and clubhouse with free Wi-Fi, fitness center with fitness classes and children’s play room, playground area, sauna, theatre, executive conference room, business center, billiard tables, lounge with fireplace, veranda, car care center, indoor basketball court, cyber café and coffee bar.
The fixed-rate loan has a seven-year term with two years interest-only and 30-year amortization thereafter, payable on an actual/360 basis.
Web site: www.beechstcap.com
CHICAGO, IL June 21, 2012 /PRNewswire/ -- MACK Companies, the largest owner of single-family investment properties in the Midwest, has announced it completed 102 investment sales between June 1, 2011 and May 31, 2012, the company's fiscal year.
This was an increase of 540 percent over the previous year. James McClelland (lower left photo), president and CEO of MACK Companies, and Eric Workman (lower right photo), vice president of sales and marketing for the Tinley Park, Ill.-based firm, made the announcement.
"For more than 15 years, we've been buying foreclosed single-family homes and turning them into rentals because we knew this was one of the best ways to enhance an investment portfolio," said McClelland. "But it's really only in the past year that investors have paid attention to this asset class as they see the news headlines reporting how many foreclosures are on the market."
According to housing data firm CoreLogic, the rise in foreclosures over the past five years has turned more than 3 million homeowners into potential renters, which means the single-family rental sector has the potential to be a $3 trillion market.
Prior to June 1, 2011, 95 percent of MACK Companies' investors were from the Chicago area. Today, out-of-towners purchase 80-85 percent of the firm's investment properties, while Chicago-area investors account for approximately 15 percent of its sales. International investors also find MACK's successful business model hard to resist, as they purchased almost 22 percent of its investment properties in the past fiscal year.
"One of the reasons why investors like MACK is because we serve as the property manager for their investment," said McClelland. "To be a successful real estate investor, property management has to be a priority. Brick and mortar has never made a mistake. Any piece of real estate has to be managed and maintained in order for it to perform. Without great property management you won't have great tenants. And great tenants are the key to a successful real estate investment."
Through MACK's AAA+ Investment Properties program, investors can buy a tenant-occupied, single-family rental home and receive the financial benefits of being an owner without the responsibilities of being a landlord. MACK oversees all maintenance needs for its investors' properties, hand-collects rent and guarantees its investors a positive monthly cash flow for the first two years after an investment purchase.
"Most investors want to enjoy the returns real estate offers, but don't have the expertise to ensure they are successful," said Workman. "Our turnkey investment program makes owning a rental property as easy checking your online statements and direct deposits from MACK."
MACK Companies currently manages approximately 600 single-family rentals. For more information on MACK Companies and its investment program, visit http://www.MACKcompanies.us.
Web Site: http://www.mackcompanies.com