Newmark has announced the Freddie Mac refinancing of Sedona Apartments in Abilene, TX. The effort was led by Newmark’s Multifamily Capital Markets Senior Managing Director Braden Harmon and Vice President Hank Glasgow of the firm’s Dallas office on behalf of owner/operator and repeat Freddie Mac client, CapX Ventures, LLC (CapX).
“This was an extremely smooth transaction with Freddie Mac and CapX,” said Glasgow. “Closing in just forty days allowed the borrower and long-term holder to access funds intended for property upgrades and completing interior renovations for remaining units.”
“The COVID-19 environment raised a lot of questions as to how the transaction process might run,” said Jason Sharp, Principal of CapX. “Could it get done? What would the timing look like? What kind of surprises might we expect? But Hank and his team kept the process flowing with great efficiency. Despite any fears or hesitations, we were very pleased that we could achieve such a successful outcome.”
Sedona is a 498-unit, garden-style multifamily property that includes modern kitchens with stainless steel appliances, hardwoodflooring, a patio or balcony and spacious walk-in closets. The property’s common amenities feature manicured grounds, two pools, a stainless-steel outdoor kitchen/picnic area, playground, sport court, a clubhouse with a fitness center and laundry facilities, as well as dog parks.
The apartments were originally constructed as two separate communities, the first built in 1974 and the second in 1976 and are linked by contiguous parcels with a road in between. CapX purchased the distressed multifamily asset in 2016 with 68 percent occupancy in the first full month of ownership. Since that time, CapX successfully renovated the property and increased current occupancy to 94 percent. Improvements included a new parking lot, HVAC systems and select interior renovations involving plumbing, paint, carpentry, fixtures, stainless steel appliances and more.
CapX is an owner and operator of value-add multifamily apartment complexes in major Texas markets, with a combined resume of 35 years in real estate and entrepreneurship. Previous deals include over 7,000 multifamily units and over $300 million in transactions as principals.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 18,000 professionals operate from approximately 480 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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