Grandbridge Funds Multifamily Property in New Orleans for Rehab

Published On: 06.09.08

Summerfield

CHARLOTTE, N.C.—Grandbridge Real Estate Capital LLC, a Fannie Mae Delegated Underwriting and Servicing (DUS®) lender, funded a $15,000,000 first mortgage loan secured by 925 Common Street, a 14-story “Class A” multifamily high-rise in New Orleans, La. The 10-year, fixed-rate loan is structured with its first two years at interest-only, with the remaining term based on an interest rate of 5.875 percent, and a 30-year amortization schedule.

Following Hurricane Katrina in 2005, the property, an office building built in New Orleans’ central business district in the 1950s, underwent a major renovation and was subsequently converted to 108 one- and two-bedroom multifamily rental units in 2006. Additionally, an approximate 100,000 square feet of former subleased hotel space was part of the physical structure.

“The entire property sits upon a ground lease with Tulane University. This aspect of the deal made it very complicated from a lender’s perspective, and opened up a world of legal issues. Grandbridge and Fannie Mae worked together to overcome hurdles which included the ‘pioneering market’ that New Orleans is today, a market-wide liquidity crisis, and the myriad of moving parts that made up the transaction,” explained Atlanta-based Grandbridge Vice President Alan Tapie, CCIM.

The high-rise is recognized by the National Register of Historic Places and as such, the property qualified for historic tax credits utilized to finance building’s conversion. Property amenities include: Ceiling heights from 10 to 14 feet, city views, powder rooms in most units, stainless steel appliances, granite countertops, furnished washers and dryers, free wireless connection with Internet tech support, individual intrusion alarms, a 200-space parking garage and video monitored common areas as well as an on-site business center and a fitness center. Completely furnished corporate units are also available. The property is expecting the development of restaurant and retail space on the first floor of the building in the near future.

Charlotte, N.C.-based Grandbridge, a subsidiary of BB&T Corporation’s (NYSE: BBT) principal subsidiary Branch Banking and Trust Company, is one of the largest full-service commercial and multifamily mortgage banking companies in the nation, has a broad investor base that includes insurance companies, CMBS lenders, pension fund advisors, and commercial banks as well as a proprietary lending platform. Grandbridge is a Fannie Mae DUS® (Delegated Underwriting and Servicing) lender, a Freddie Mac Program Plus® seller/servicer and an 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. It operates production offices in 28 cities across the country. Grandbridge’s servicing portfolio was more than $21 billion as of Dec. 31. More information about Grandbridge is available at www.gbrecap.com.

With $132.6 billion in assets and nearly 1,500 financial centers in 11 states, Winston-Salem, N.C.-based BB&T Corporation (NYSE: BBT) is the nation’s 14th largest financial holding company. More information about the company is available at BBT.com.

Contacts

BUSINESS

Thomas S. Dennard
Grandbridge CEO
704.379.6910

David A. Roberts
Grandbridge President and COO
205.978.1841

Patricia Muse
Grandbridge Marketing
205.978.1139