Friday, March 27, 2015

CBRE Arranges Financing for MF Portfolio

CBRE Capital Markets’ Debt & Structured Finance group in Dallas has arranged acquisition financing for a two-property multifamily portfolio comprising more than 700 units in Dallas.

CBRE, working on behalf of CAF Capital Partners, obtained a 10-year Freddie Mac loan coupled with a preferred equity investment by an affiliate of Highland Capital Management LP to finance the property and introduced Button Capital as the joint venture equity partner.

"It was not an easy deal to execute on the financing side," Brian Myers, vice president with CBRE’s Joint Venture & Structured Capital team, told "By sourcing the entire capital stack, we were able to coordinate and oversee the process to successfully overcome difficult aspects of the transaction, such as a tight time frame, a complex ownership structure, and a significant time zone difference."

“We were able to purchase two well-located, institutional assets at a great basis,” said Chris Faulkner, principal at CAF Capital Partners, in a release. “CBRE not only arranged the underlying debt, they also introduced us to Button Capital, which has a very similar business model and is able to make decisions quickly and execute. Our relationship with Button will be key in the expansion of CAF not only in Texas, but nationally.”

Originally built in 1996 and 1998, Emory at Horizon North and Ashmore at Horizon North consist of 712 total units. CAF and Button plan to continue and enhance the current renovation program to further capitalize.

“Valuations in North Dallas today are still very much supported by fundamentals,” said Justin Ng, a co-founder of Button Capital. “Although there is capital set aside for renovations of these two properties, there should not be much execution risk. We expect the asset to maintain high occupancy levels and deliver attractive returns for years to come.”

Brian Myers and Jay Wagley led CBRE’s Dallas Debt & Structured Finance team that originated and secured the financing on behalf of CAF Capital Partners. Other team members included Mike Bryant, Chris Wong and Harry Krieger.

Anna Caplan,