08/03/2012

Rockpoint, Kushner Line Up Big Freddie Loan

Beech Street Capital has originated a $371 million Freddie Mac loan in conjunction with the recapitalization of 10 apartment complexes in the Baltimore area.

The fixed-rate loan refinanced $360 million of maturing debt on the 5,517-unit portfolio.

Under the recap, Kushner Cos. of New York acquired a roughly 25% stake in the ownership group from a Rockpoint Group partnership, which retained the remaining interest. The transaction valued the portfolio at some $500 million. That put the loan-to-value ratio at about 74%. Meridian Capital brokered the new 10-year loan, which closed Wednesday.

Rockpoint, a Boston fund shop, acquired a majority stake in the portfolio in early 2007, buying out most of the interest held by Philadelphia fund shop Lubert-Adler Partners. Sawyer Realty of College Park, Md., remained in the ownership group.

The new partnership left in place a $360 million interest-only debt package that Greenwich Capital had originated in June 2005. That fixed-rate package was scheduled to mature last month, but the Rockpoint group was given a short-term extension as it negotiated the new loan.

Under the latest recap, Rockpoint still holds the majority interest, with the rest divided between Kushner and Sawyer. Lubert-Adler has exited the ownership group. Also, Kushner will take over the management of 2,800 additional units owned by Rockpoint and Sawyer.

Kushner, headed by Jared Kushner, unloaded a massive multi-family portfolio in 2007, when it shifted its focus to other commercial real estate sectors. But the company has returned with a splash over the past year, buying interests in more than 11,000 units, including the current deal.

The portfolio includes the 1,212-unit Commons at White Marsh Apartments, at 9901 Langs Road in Middle River, Md.; the 1,098-unit Highland Village Townhomes, at 3953 McDowell Lane in Baltimore; and the 803-unit Dutch Village Townhomes, at 2349 Perring Manor Road in Baltimore.

Greenwich, which was subsequently acquired by RBS, securitized the senior $340 million portion of its debt package via two pooled offerings (Greenwich Capital Commercial Funding Corp., 2005-GG5, and GS Mortgage Securities Trust, 2006-GG6). The senior portion had a coupon of 5.22%.

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