Dealmaker: Pillar Originates $69M in Multifamily Refinances

Pillar, New York, originated $69 million to refinance multifamily properties in Hoboken, N.J. and Gaithersburg, Md.

In Hoboken, Pillar Vice President Jessica McGuire originated a 10-year fixed-rate loan with a 30-year amortization schedule for The North Constitution at The Shipyard, a 14-story, 138-unit property with ground floor retail space. Freddie Mac funded the loan, which closed in December.

Sponsors Michael and David Barry of Ironstate Holding Co., Hoboken, refinanced the 1999-vintage Class A property.

The property sits on the city’s waterfront as part of The Shipyard development, a development that includes seven apartment communities as well as retail space.

Pillar also originated $9.6 million to refinance the Airpark Apartments in Gaithersburg, Md. Built in 2008, the Airpark Apartments is a fully occupied 108-unit affordable housing community. 

Artin Anvar, Managing Director in Pillar’s Washington, D.C. office, originated the 40-year fixed-rate HUD 223(a)(7) loan loan for Smart Development, Gaithersburg. The loan closed on January 26.

“This was a very complicated transaction due to the many different layers we had to work through to structure the transaction, including the previous HUD loan, low income housing tax credits and a home loan from Montgomery County,” Anvar said. “We also took advantage of the new HUD guidelines for affordable properties to lower the mortgage insurance premium to 25 basis points,” which lowered the client’s debt service, he said.

SunTrust Bank, Atlanta, acquired Pillar in December.