October 30, 2012
Two Connecticut M-F Properties Reel in $96M in Financing
By Barbra Murray, Contributing Editor
LCOR has secured $96 million in financing for Greenwich Place and Greenwich Oaks two apartment communities offering an aggregate 396 units in Greenwich, Conn. The real estate company relied on commercial real estate and capital markets services firm HFF to orchestrate the two-loan deal.
Jon Mikula, a senior managing director, and Jim Cadranell, managing director, spearheaded the HFF team. The firm arranged the fixed-rate financing for the Fairfield County properties through Allianz Real Estate of America, securing a $55 million and a $41 million loan collateralized by Greenwich Place and Greenwich Oaks, respectively. Allianz did not exactly have to go out on a limb in terms of risk; the previously unencumbered assets are Class A properties in a Class A suburban New York City locale.
Sited on 30 acres at 311 Putnam Green, Greenwich Place made its debut in 1969, but the 266-unit apartment complex is keeping up with the times, having most recently undergone a renovation in 2010. The 130-unit Greenwich Oaks, located on approximately 29 acres just two miles away at 219 Weaver St., is no relic of the past, either; the 41-year-old property was last upgraded in 2011.
In addition to recent makeovers, the apartment communities boast a location in a high-demand area, and there’s nothing like the prospect of steady, long-term cash flow to attract lenders.
“The [Connecticut] rental market remains robust as an alternative for would-be buyers,” Paul E. Breunich, president and CEO of William Pitt Sotheby’s International Realty, writes in a third quarter report. “We expect rental prices to remain high and inventory levels low while we emerge from this period of housing weakness.”
According to numbers from commercial real estate analysis provider REIS Inc., the average annual apartment rent growth in Fairfield County is expected to be 4.6 percent through 2016, outpacing the northeast region and the nation, which are expected to experience rent growth of 4.4 and 4.1 percent, respectively.