Equity Residential Gets $550M Loan
- Aug 28, 2008
Chicago-based Equity Residential Inc. has closed on $550 million in financing, putting up 15 of its multi-family properties as collateral. Originated by Wells Fargo for repurchase by Fannie Mae, the secured interest only loan has an all-in effective interest rate of about 6 percent and matures in 11.5 years, the first 10.5 of which will carry a fixed rate, with the final year carrying a floating rate. Equity Residential will lump the $550 million with $1.4 billion in unsecured revolving credit and $145 million in unrestricted cash to use for its 2008 and 2009 funding requirements. Details on the properties that are being used as collateral have not been made available. The company has a portfolio of owned or partially owned assets that encompasses a total of over 150,000 residential units at 563 properties, 116 of which are in California. The Wells Fargo transaction marks Equity Residential’s second secured loan closing this year. In March, the company wrapped up a $500 million loan that was originated by Wachovia Multifamily Capital Inc. for repurchase by Freddie Mac. Aside from the 5.48 percent all-in effective interest rate, the terms of the loan mirror those of the Wells Fargo financing. Equity Residential is a REIT that focuses on the acquisition, development and management of high-quality apartment properties in leading growth markets across the U.S. The 15-year-old company, which owns or has investments in assets in 23 states and Washington, D.C., is the largest publicly traded owner of multifamily properties in the U.S.