KeyBank Real Estate Capital provided a three-year, $44.75 million senior bridge loan to finance the $61.68 million acquisition of a recently developed property, Overlook at Farragut, a 267-unit multifamily property in a western suburb of Knoxville, Tennessee, by Valor Residential.
Valor Residential, is a real estate investment and asset management company with more than $200 million in multifamily assets throughout the Southeast Region including Tennessee, Georgia, North Carolina, South Carolina, Kentucky, Northern Florida and Alabama.
Overlook at Farragut is a Class-A, garden-style property with high-end interior finishes, conveniently situated near shops and restaurants and easy access to Knoxville via I-40. Overlook also offers amenities including a saltwater pool, fitness center with Peloton bikes and an infrared sauna, car wash, pet grooming station, and clubhouse.
The acquisition financing was arranged by Moshe Feiner, Partner at Sevenstone Capital who assisted in raising an additional $5.6 million of preferred equity from Walker Dunlop Investment Partners. The remaining cash equity was contributed by the sponsor, Valor Residential. The structure between the senior loan and preferred equity provided total financing of 82.5 percent Loan-to-Cost (LTC) with a relatively low blended interest rate of 2.60 percent.
KBREC’s New York City office provided the senior loan financing lead by Alan Isenstadt, Pranav Sarda and Jack Hoffman.
