Hybrid Capital has arranged $12 million in permanent financing for Northgate Apartments, a 321-unit, 21-story affordable housing complex, according to Bobby Bakhchi, CEO of the firm.
Bakhchi said, "Despite the challenging Camden market, which has been hampered by a high crime rate, we were able to attract interest from lenders based on the strong sponsorship, excellent cash flow, smart and efficient property management, and the quality of the 95% occupied property with excellent security and commanding views of Philadelphia." The 10-year loan was arranged at a rate of 3.49%.
The property was purchased for $12 million in 2011 by the sponsor, Marc Wolfe. At the time of purchase the property was in poor condition with significant deferred maintenance, however since purchasing the asset, Wolfe has invested $1 million in capital improvements, including 140 apartment renovations at $5,000 per apartment, security system with cameras on every floor, new roof, new boiler, plumbing upgrades and repairs to all common areas.
Wolfe said, "Hybrid understood the asset, and created an environment that enabled us to achieve favorable rates and terms. Additionally, we are pleased with the timely and efficient closing process."
Over the past three years, Hybrid Capital has arranged financing for properties valued in excess of $1.5 billion. Tags: