Tennessee bank finances major apartment sale near UNCW
Published on: December 6, 2012
J. Elias O'Neal, Greater Wilmington Business Journal
A Memphis-based community bank, Financial Federal, announced Thursday it has provided more than $21.7 million in financing to a group of unnamed investors to purchase two students centered apartment communities near the University of North Carolina Wilmington.
Richard Wood, executive vice president of the commercial and multifamily division of Financial Federal Bank, said his division recently loaned the money to a group Washington, D.C. investors to purchase the Brookstone Village and Campus Walk apartment communities from Austin-based American Campus Communities.
The transaction is part of Financial Federal Bank’s 2012 commercial and multifamily lending program that will exceed $200 million at the close of the year.
As part of the sale, the investors will own 413 apartment units between the two complexes, representing a total of 560 beds.
The investors received permanent loan financing through the Freddie Mac Multifamily Program, Wood said. He added the investors also plan to pump more than $2 million in capital improvements into both properties; however, a construction timeline for the renovation has not been released.
Wood said the Wilmington multifamily market has one of the strongest student housing markets in the Southeast, making it attractive for investors of multifamily properties.
“Both properties that were sold had an occupancy rate close to 100 percent,” Wood said. “We are certainly open to any financing or refinancing of student housing or conventional housing properties in Wilmington.”