Dealmaker: Grandbridge Closes $500M in Transactions

Grandbridge Real Estate Capital announced recent closings totaling $491 million for industrial, retail and multifamily properties.

In Miami, Grandbridge Real Estate Capital closed a $17.25 million first mortgage loan secured by a 375,080 square foot multi-tenant industrial property. The permanent, fixed rate refinance was originated by Grandbridge Miami-based Senior Vice President Philip Carroll and funded through one of Grandbridge’s insurance company correspondents.

The three-building complex of industrial warehouse space was 98 percent occupied at closing. The transaction featured a seven-year term and 30-year amortization. Carroll locked an interest rate of less than 4 percent under a forward rate lock agreement in the first week of November for a closing five months later.

In Wilmington, Del., Grandbridge closed a $44.5 million first mortgage loan secured by an eight-property, 4,400-unit, self-storage portfolio.

The refinance transaction was originated by Grandbridge Miami-based Vice President Michael Balan for Storage Rentals of America, a repeat client. The permanent, fixed rate loan was funded through BB&T Real Estate Funding and featured an initial period of interest only, a 10-year term and 25-year amortization.

“The two challenges we had to overcome were the sharp increase in Treasuries at the time we looked to lock in the rate and the fact that it was a portfolio, so we lent on a large number of units at once,” said Benjamin Macfarland, CEO of SROA Capital LLC.

Grandbridge’ Minneapolis office closed a permanent refinance for a $71.8 million manufactured housing portfolio secured by six manufactured home communities comprising more than 1,700 sites.

The nonrecourse loan was originated through Grandbridge’s agency platform and featured a fixed rate, 30-year amortization and an interest-only component. Grandbridge facilitated a closing process to comply with the borrower’s payoff date.

Financing was originated by Tampa Bay-based Senior Vice President Todd Elkins and Minneapolis-based Vice President Tony Carlson and Assistant Vice President Troon Dowds.

Grandbridge’s Birmingham, Ala. office facilitated closing of a $13.1 million first mortgage loan secured by I-10 Business Park, an industrial/bulk warehouse complex in Loxley, Ala.

The permanent, fixed rate refinance loan was originated by Senior Vice President William Silsbee for a repeat client and was funded through one of Grandbridge’s insurance company correspondents.

The distribution/warehouse complex was built between 1997 and 2008 and features seven one-story buildings with a 977,520 square feet of rentable space.

Silsbee also originated a $12.8 million first mortgage loan secured by Oxmoor South, a 528,428 square-foot warehouse/industrial property in Birmingham. The permanent, fixed rate refinance loan was funded through one of Grandbridge’s insurance company correspondents.

The property serves as a warehouse/distribution space and features 27-foot ceilings, multiple loading capacities, reinforced five-inch concrete floors and tilt-up concrete walls.

Silsbee also arranged an $11.5 million first mortgage refinance of Distribution Center, a 515,000 square-foot facility in Birmingham. The transaction was funded through one of Grandbridge’s insurance company correspondent relationships.

Also in Minneapolis, Grandbridge closed a $3.5 million first mortgage loan secured by a 44-unit, age-restricted apartment community in Circle Pines, Minn. Financing was originated by Vice President Tony Carlson.

Funding for the fixed-rate refinance loan was provided by one of Grandbridge’s insurance company correspondents and featured a 10-year term and 30-year amortization, closing with a low, fixed interest rate. Additionally, the loan featured a forward rate lock that allowed the borrower to eliminate the risk of rising interest rates earlier than alternate financing sources allowed. Grandbridge facilitated a timely closing process in step with the borrower’s payoff date.

Grandbridge’s Columbus, Ohio office facilitated closing of a $23.5 million first mortgage loan secured by Bellamy at Greenville, a multifamily/student housing property in Greenville, N.C.

Senior Vice President Ted Schmidt originated the permanent, fixed rate refinance for a repeat client. Funding for the transaction was provided through Fannie Mae’s DUS loan program. The loan was structured with a 12-year term and 30-year amortization, closing with an interest rate in the mid4 percent range.

The 308-unit property (1,056 beds) caters to students of nearby East Carolina University and Pitt Community College with a mix of two-bedroom/two-bath and four-bedroom/four-bath units. In addition to a large pool and lounge area, residents have access to a clubhouse that features the leasing/administrative office, common area (including pool table and lounge), fitness center, private study rooms and movie theater.

Grandbridge’ Columbus office also facilitated closing of a $1.8 million first mortgage loan secured by Grandview Starbucks, a retail property in Columbus. The permanent, fixed rate development loan was originated by Schmidt for a repeat client and was funded through one of Grandbridge’s bank lenders.

The loan is structured with a 10-year term and 25-year amortization, closing with an interest rate in the mid-3 percent range. The 2,250 square foot property is a free-standing building with a drive through.

Grandbridge’s Atlanta office closed a $41.4 million first mortgage loan secured by Collier Ridge Apartments, a 300-unit multifamily community in Atlanta. Senior Vice President Alan Tapie and Assistant Vice President Thomas Wiedeman originated the acquisition.

The floating rate loan was funded through Freddie Mac’s Value-Add multifamily loan product, enabling Grandbridge to structure the nonrecourse financing with 36 months of interest-only and two 12-month extensions. The structure was negotiated to accommodate the client’s upgrade plan, Tapie said. The transaction closed with an attractive interest rate and prepayment flexibility after the first year.

Tapie said the property was purchased by a repeat Grandbridge client. Grandbridge and Freddie Mac worked together to complete value-add transaction at a maximum of 85 percent LTV. The deal also qualified for Green Up, a Freddie Mac Green Advantage options, as numerous energy saving aspects were being implemented into the upgrade of the property.

Grandbridge Real Estate Capital’s Seniors Housing and Healthcare Finance Group facilitated closing of a $229.3 million agency credit facility on behalf of an undisclosed joint venture.

The credit facility, originated by Richard Thomas and Meredith Davis, is secured by 14 seniors housing properties with more than 1,400 units across 10 states.