Beech Street Capital Closes $6.5 Million Fannie Mae Adjustable Rate Loan For Birmingham, AL Apartments

Montevallo Apartments, Alabaster, AL

BETHESDA, MD, Feb. 27, 2013 – Beech Street Capital, LLC, announced today that it closed a $6.5 million Fannie Mae adjustable rate loan for the acquisition of the Montevallo Apartments, totaling 200 units, in Alabaster, Alabama, a fast-growing suburb in the Birmingham MSA.

The transaction, originated by Barry Lefkowitz and Jay Jacobovitch of Meridian Capital Group, LLC, was financed by Beech Street Capital as part of its correspondent relationship with Meridian. 

The borrower is a repeat Beech Street customer, having closed six previous Fannie Mae transactions with the company in 2012.

Jay Jacobovitch

 The borrower had recently acquired four other garden apartment complexes in the Birmingham MSA from long-term owners who had not operated the assets to their full potential.

 It saw the same opportunity at Montevallo Place.  Beech Street recommended that the borrower select Fannie Mae’s 7/6 ARM program to finance the property.  This enabled the borrower to take advantage of the very low rates while it was investing in upgrading the units.

 Another attractive feature for the borrower was the program’s one-year lockout, with a one percent prepayment penalty thereafter.  This allows for the option to refinance, once the performance of the property improves. 

Barry Lefkowitz

Montevallo Place (formerly Woodbrook Trail Apartments) was built in two stages, in 1977 and 1988.  The property includes a clubhouse, two pools, two tennis courts, and a playground and is conveniently situated near shopping.  Alabaster was ranked in Money Magazine’s top 100 Best Places to Live in 2009.

 The adjustable-rate loan has a seven-year term, one-year lockout followed by one percent thereafter, and a 30-year amortizing schedule.

For a complete copy of the company’s news release, please contact:

 Courtney Lewis

 240-507-1948

 Jenifer Bernardi

240-507-1946.