Dealmaker: BWE Secures $260M for Multifamily Portfolio

Illustration courtesy of BWE. Shown: Skyhouse Austin (top left), The Addison Apartments (top right), Victory Flats (bottom left) and The Encore Southpark (bottom right).  

BWE, Cleveland, secured $260 million to refinance a portfolio of six multifamily properties consisting of more than 1,500 units in Austin, Texas, Portland, Ore., Charlotte, N.C. and Denver, Colo. metros.

All six properties are less than 10 years old and were stabilized with a portfolio vacancy of 5%.

Stephen Perricone, senior vice president in BWE’s Philadelphia office, originated the loan through Northwestern Mutual, Milwaukee, for an institutional sponsor. The five-year loan, which has a 5.07% interest rate, full-term interest-only payments and a 55% LTV ratio, was secured with release provisions for each individual property in case an asset is sold in the future.

Five portions of the loan, totaling $210.5 million, have closed, with a rate-locked forwarded commitment for the remainder scheduled to close in the first quarter of 2025.

“Knowing that this portfolio had pending maturities and that the market has been volatile, we began underwriting this deal early in the year so we could be proactive to changes in the market,” Perricone said. “By leveraging a trough in the treasury market, we were able to secure a very favorable rate on the loan, even locking-in a forward commitment on a portion of it that would fund in 2025 so that the client could let an existing, favorable rate loan mature before taking out new financing.”

The six properties in the portfolio, all stabilized, Class A buildings, are:

Skyhouse Austin (Austin, Texas)

The Addison Apartments (Austin, Texas)

Victory Flats (Beaverton, Ore.)

The Encore Southpark (Charlotte, N.C.)

Hartley Flats (Denver, Colo.)

Studio LoHi (Denver, Colo.)