Bane of Johnson Capital closes $75 million financing for Florida/Texas portfolio

Johnson Capital has completed a complex debt and equity financing transaction totaling $75 million for the acquisition of nine multifamily properties located in Florida and Texas. Neil Bane, principal and head of the equity division of Johnson Capital in the N.Y.C. office, working on behalf of a fast-growing, experienced national commercial and residential owner and developer, was able to arrange a strategic partnership to provide a significant equity contribution for the acquisition while securing both fixed and floating rate debt for the nine properties. The sponsor is a southern California-based full-service real estate investment and development firm that specializes in developing and acquiring multifamily, office and retail properties nationwide. "Our sponsor was looking for the right strategic partner with a big appetite for B & C quality apartments on a nationwide basis," commented Bane. Johnson Capital was able to secure a prominent "off the radar" equity source with a strong belief in the attributes of the B & C quality multi-family sector as well as the sponsor's turn-around and asset management capabilities. Bane said, "We had multiple equity providers interested in this portfolio, but not all of them were able to meet the short time frame required for this acquisition...Johnson Capital was able to identify and secure an equity provider that was attracted to the consistent cash flow and the upside reflected in this portfolio with an interest in doing more of the same across the country." Johnson Capital was also able to secure advantageous debt financing totaling $48.6 million. The loan proceeds included $35.8 million of Fannie Mae loans for the acquisition of five multifamily properties in Tampa, FL and two in Orlando, FL as well as bridge financing in the amount of $12.8 million for two multifamily complexes in Pasadena, TX. Johnson Capital placed the financing with Centerline Capital in New York. The seven properties acquired in Tampa and Orlando contain a combined 1,271 units. The loan terms for these include a 10-year fixed rate with a two-and-a-half year interest-only period and a 25-year amortization schedule. The unit breakdown is: * Tampa, FL (176 Units) * Bradenton, FL (92 Units) * Fern Park, FL (352 Units) * Orlando, FL (184 Units) * Brandon, FL (125 Units) * Tampa, FL (212 Units) The $12.8 million bridge loan for the two Pasadena, TX assets is for a term of 14 months through December 31, 2012. The bridge loan was provided by a leading Fannie Mae lender and is secured by a 468-unit apartment complex and another property with 514 units. Added Bane, "the borrower has an exemplary track record and reputation in the industry and has completed more than 81 transactions totaling two million square feet...The Sponsor's strong track record and reputation made this very attractive to the Fannie Mae and bridge lenders." Neil Bane and the Johnson Equity team have completed over $10 billion in debt and equity transactions over the last few years. It specializes in raising debt and equity for highly structured transactions, portfolio acquisitions, note purchases and distressed acquisition opportunities. Mr. Bane has been very successful in working with leading global pension funds, family offices, sovereign wealth funds and private equity firms to structure and procure large platform equity commitments for U.S., European and Latin American real estate transactions.