Grandbridge Closes Kansas Multifamily and Office Transactions

Published On: 05.15.09

Wash Ct.

Charlotte, N.C. — Grandbridge Real Estate Capital LLC recently originated and closed three commercial real estate transactions in Kansas. The most recent transaction was a $4,800,000 first mortgage loan secured by the Cline Wood Office Building in Leawood, Kansas. Kansas City-based Executive Vice President Thomas J. Turner originated a forward/permanent loan for the 28,000 square foot office building, assisting the borrower in managing the process of completing construction and purchasing the property upon construction completion. The transaction, based on a 15-year term with a 20-year amortization, closed with an interest rate in the high-six percent range. American United Life Insurance Company funded the forward commitment and the permanent loan. The property is located on 3.3 acres of land in the Kansas City MSA. Upon delivery of the building, the Cline Wood Agency, Inc., will master-lease 100 percent of the building, occupying approximately 19,000 square feet. The remaining space will account for future growth and expansion of the Cline Wood Agency and may be sub-leased to other tenants on a short-term basis.

Atlanta-based Grandbridge Vice President Jane Z. Harrison originated and closed a $2.6 million first mortgage loan secured by Forest Grove Apartments in Wichita, Kansas. The fixed-rate, nonrecourse loan was funded by Grandbridge and sold to Fannie Mae under its Delegated Underwriting and Servicing (DUS®) Early Rate Lock (ERL). Fannie Mae’s ERL feature lets borrowers manage interest rate risk by locking the interest rate up to 12 months in advance of funding.

The transaction closed with an interest rate in the mid-six percent range, based on a 10-year term with a 30-year amortization. The loan will retire existing debt and return a portion of equity to the borrower. Built in 1982, the property is located on 8.39 acres of land in West Wichita and is comprised of 16 two-story apartment buildings. Amenities to the property include a community building, laundry center, tanning room, swimming pool and basketball court.

Another recently closed Kansas transaction is the $850,000 first mortgage loan secured by the Washington Court Apartments in Junction City, Kansas. "Grandbridge Atlanta's office teamed up with Tom Vrabac in the Kansas City office. He and his group were a big part of getting this deal done,” explained Atlanta-based Vice President Alan Tapie, who originated the transaction for the 52-unit, market-rate multifamily property. Funded by Royal Neighbors of America, the transaction, based on a 10-year term with a 20-year amortization, closed with an interest rate in the mid-six percent range.

“Grandbridge’s Atlanta and Kansas City offices teamed up to find the right insurance company lender to fund this unique multifamily property. The complex is occupied by a large number of military tenants, making it more difficult to find funding,” explained Tapie.

Charlotte, N.C.-based Grandbridge, one of the largest full-service commercial and multifamily mortgage banking companies in the nation, has a broad investor base that includes insurance companies, pension fund advisors, commercial banks, and capital markets investors, as well as a proprietary lending platform. Grandbridge is a top 10* Fannie Mae DUS® (Delegated Underwriting and Servicing) lender, a Freddie Mac Program Plus® seller/servicer, and a MAP multifamily and LEAN healthcare approved active participant in multifamily products insured by the Federal Housing Administration (FHA).

The company arranges permanent commercial and multifamily real estate loans; services loan portfolios; and provides asset and portfolio management and real estate brokerage services. Grandbridge has a servicing portfolio of approximately $24.9 billion representing nearly 100 capital providers.

With $143.4 billion in assets, Winston-Salem, N.C.-based BB&T Corporation (NYSE: BBT) is the nation’s 11th largest financial holding company. Founded in 1872, it operates more than 1,500 financial centers in 11 states and Washington, D.C. More information about the company is available at BBT.com.

* Grandbridge is the #7 originator of Fannie Mae DUS multifamily debt financing products for 2008.

Contacts

BUSINESS
Thomas S. Dennard
Grandbridge CEO
704.379.6910

MEDIA

Patricia Muse
Grandbridge VP | Director of Marketing&
205.978.1139