News in Brief from Simon Property, Marcus & Millichap, Freddie Mac, Verus
Simon Property Group Acquires Taubman Centers
Simon Property Group, Indianapolis, completed its acquisition of an 80 percent ownership interest in The Taubman Realty Group Limited Partnership, Bloomfield Hills, Mich.
Simon, through its operating partnership Simon Property Group LP, acquired all of Taubman Centers’ common stock for $43.00 per share in cash and the Taubman family sold one-third of its ownership interest at the transaction price and remains a 20 percent partner in TRG.
Total consideration for the acquisition, including the redemption of TCO’s 6.5 percent Series J Cumulative Preferred Shares and its 6.25 percent Series K Cumulative Preferred Shares, was $3.4 billion, funded with existing liquidity, including proceeds from Simon’s recently completed equity offering.
BofA Securities, Citigroup Global Markets Inc. and Evercore Group, L.L.C. served as financial advisors to Simon. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Latham & Watkins LLP were legal advisors.
Goldman Sachs & Co. LLC served as financial advisor to Taubman; Wachtell, Lipton, Rosen & Katz and Honigman LLP provided legal advice. The Special Committee of the Board of Directors of Taubman has retained Lazard as its independent financial advisor and Kirkland & Ellis LLP as its independent legal counsel.
Marcus & Millichap Acquires LMI Capital
Marcus & Millichap, Calabasas, Calif., acquired the assets of Houston-based LMI Capital.
LMI Capital, founded in 1999, arranges debt and equity capital across all property types including multifamily, office, retail, self-storage, hospitality, mixed-use and industrial. The company serves commercial real estate owners, developers and investors across the Southwest. The firm has background providing capital markets solutions through Fannie Mae and Freddie Mac. The 10-person LMI team has completed more than $1.2 billion in transactions over the last three years.
Freddie Mac: Green Program Cuts Multifamily Energy and Water Consumption
Apartment properties that participate in the Freddie Mac Multifamily Green Advantage program save more than 2.7 million gallons of water and 1.3 million kBtu of energy per year on average, the enterprise said.
Created in 2016, the Green Advantage program provides financing incentives for multifamily borrowers that agree to reduce energy and water consumption.
Freddie Mac Multifamily released a white paper, 2020 Analysis of Green Improvements in Workforce Housing, as part of Freddie Mac’s Duty to Serve plan to increase rental and homeownership opportunities in historically underserved markets throughout the nation.
Tenants save $114 per year on average based on reported property data, the report said.
Since the program’s inception through the third quarter of 2020, Freddie Mac Multifamily Green Up and Green Up Plus provided more than $60 billion in financing through loans purchased on nearly 600,000 units. The financed properties are typically garden-style apartments that average 35 years old with 85 percent of units being affordable to households making 100 percent of area median income or less.
Verus Commercial Real Estate Finance Introduces Single Family Portfolio Loan Product
Verus Commercial Real Estate Finance, New York, (launched a new product for financing of Single-Family Home Rental Portfolios.
Lending Parameters of the Single-Family Portfolio product include:
- Minimum of 5 (SFR – 1 Unit) properties or 3 (2-4 unit) properties
- 5-20 unit properties, warrantable condominiums, modular homes, leaseholds
- 5, 7 and 10-year fixed loan with both interest only and amortizing options
- Loan sizes of $500,000 – $15 million
- Purchase, Rate/Term Refinance, Cash Out Refinance
- Up to 75% LTV
- Non-recourse or Limited recourse
