Lexington, KY – December 14, 2011 – (RealEstateRama) — CBRE Capital Markets arranged an $18.5 million loan via Freddie Mac for the purpose of taking out bank construction financing on Red Mile Village, a 537-bedroom Class A student housing property near the University of Kentucky in Lexington, Kentucky. The 10-year fixed rate loan was arranged on behalf of RCH Development, Inc. based in Jackson, Missouri. Terms of the loan include a sub-5% interest rate, 75% loan- to-value and a 1.35x DSCR.
CBRE Senior Vice President Glenn D. Housman, MAI arranged the financing on behalf of the borrower; “Overall activity in the multifamily sector increased largely helped by the very low interest rates and the excellent availability of capital via the GSEs.”
“The quality of the property and stability of the asset contributed to the favorable loan terms,” added Housman. “The Lexington student market is tight for superior product—the two-phase property stabilized within several months of completion of the first phase. Freddie Mac agreed to the refinance of the bank debt after only a month of stabilized occupancy of the second phase.”
At the time of closing, overall occupancy was 95%.
Housman is with CBRE in the Orlando, Florida office as a member of the Debt & Equity Finance group. He teamed with Vice President Jeremy Chism from the CBRE affiliate office in Memphis, Tennessee to provide financing advisory services to RCH Development.
“The degree of professionalism and expertise of Glenn Housman and the CBRE staff was exceptional as they deftly navigated through the process,” commented Chad Hartle, President of RCH Development, Inc. “They exceeded my expectations in every category.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2010 revenue). The Company has approximately 31,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.
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