Eighteen Capital Group's residential portfolio.
Refinancing of Eighteen Capital Group Residential Portfolios
Cushman & Wakefield has refinanced a loan on a nine-property apartment portfolio totaling 1,969 units in Arkansas, Texas, South Carolina, Indiana and Missouri.
The US $108,000,000 cash-out refinancing deal involved a 10-year loan with interest only payments for the first two years, a fixed coupon of 2.95 per cent, and approximately 70 per cent leverage.
Cushman & Wakefield Executive Managing Director, Baxter Fain, led a team from the company's Equity, Debt and Structured Finance Group in Denver that included Christina Grimme and Sarah Dinning.
Commenting, Jeffrey Plummer, managing director of Eighteen Capital Group, said: "This is the single largest transaction in our company’s history. Closing a deal of this magnitude in a challenged 2020 debt market speaks volumes about the efforts of our team. We’re thankful for the opportunity to have worked with great partners on this transaction and for being able to deliver an important and successful debt execution for our owners."
Fain added: "This was a critical portfolio to refinance for the client in this environment. The significant cash out in addition to locking in a historically low interest rate positions the sponsors very well for the next 10 years in addition to providing liquidity to look at opportunities in the coming months and in 2021.
"The client’s expertise in turning around broken and heavily distressed assets was evidenced in this refinance and will help them in buying new deals as they come available".