Dealmaker: Alliant Credit Union Lends $91M on Multifamily Properties

Alliant Credit Union, Chicago, originated $90.8 million for multifamily properties in Oklahoma and Texas.

In Tulsa, Okla. Alliant closed acquisition financing for a 1,540-unit, seven-property portfolio. The loan was structured with a $56.8 million initial funding, which representing an 80 percent loan-to-purchase/75 percent loan-to-appraised value ratio. It included earn-out provisions for the borrower to obtain additional approved funds.

Alliant Commercial Loan Originator Peter Margolin said demographic trends and economic fundamentals indicate a solid rental market outlook for the foreseeable future in Tulsa.

The sponsor acquired the properties in an off-market transaction and plans to invest in improvements to increase the portfolio’s 82 percent average occupancy rate. The borrower budgeted $6.4 million to improve all seven properties, with plans ranging from basic cosmetic changes to full renovation depending on the condition of each individual property.

Meridian Capital Managing Director Gershon Friedman referred the loan to Alliant.

The credit union also originated $25.5 million for two Texas properties. It lent $17 million to refinance Warehouse & Factory Apartments, a 163-unit student housing property in College Station. The five-year non-recourse loan included interest-only payments for the first two years. Berkadia Senior Managing Director Peter Benedetto referred the transaction to Alliant.

In Dallas suburb Lancaster, Texas, Alliant provided a $8.5 million acquisition loan for a 120-unit multifamily property. Mark Steele from Meridian Capital’s New Jersey office referred the opportunity to Alliant. The property is currently 95 percent occupied in a submarket with sub-4 percent vacancy rates.

The seven-year limited recourse commitment included multiple years of interest-only payments to free up cash flow for the owners to execute their value-add business plan. The loan also included a forward-commitment earn out of additional proceeds upon stabilization.