Press Release - New apartment financing in Memphis by Financial Federal
Published on: September 6, 2011
The Winchester Road corridor from the Airport to Lamar has not been friendly to the inexperienced, out of town developers that have purchased apartment properties in that submarket over the years. As they learned, a cosmetic redo doesn’t necessarily translate into higher rents or a sense of community to the residents. However, one local general contractor with multifamily experience and knowledge of the submarket saw an opportunity to renovate a troubled property in January 2010 just west of Perkins Road to make a positive impact for the tenants and the neighborhood.
Wes Misenhelter, owner of Pinebrook Pointe Apartments, LLC, purchased the 248 unit Pinebrook Pointe Apartments at a discount and commenced an extensive interior and exterior renovation. “In addition to the physical upgrades to the buildings, additional parking lot lighting, fencing and card access gates transformed the asset and attracted a new tenancy that welcomed the safe environment plus upgraded units at reasonable prices,” said Rick Wood, Executive Vice President of Financial Federal.
The acquisition loan was made by Lauren Jarrell of Triumph Bank who had prior lending experience with MPS. “Wes has decades of multifamily construction experience and was focused on making a difference at Pinebrook Pointe. He definitely accomplished that goal in a brief timetable of only 18 months,” said Jarrell.
With occupancy over 95% and collections solid, Misenhelter approached Financial Federal to assist him in obtaining fixed rate, nonrecourse permanent financing on the property. “Everyone I talked to said Financial Federal was the most reliable, trustworthy apartment lending source in the City. In their understanding of the turnaround and value criteria, Financial Federal proved to be the best choice for me without a doubt,” said Misenhelter.
Financial Federal arranged a $3,700,000 permanent loan through a DUS lender (Fannie Mae) in August, 2011 that the local institution had worked with in the past on several apartments from East TN to Louisiana. “Two features intrigued the permanent lender,” said Jon Van Hoozer, Chief Commercial Underwriter at Financial Federal, “the perfect upward trend in occupancy and collections from lease-up through stabilization and the sense of community created by Wes at Pinebrook. Currently occupancy (physical and economic) is at 97%.”
Other owners and management companies need to take notice that it is possible to improve an asset and environment to make a difference in the community.