ValueXpress closed a $9-million CMBS conduit first-mortgage loan on a 353-unit apartment complex with 61 two-story apartment buildings constructed in 1980-1989. The property was approximately 87% occupied at closing. The 10-year, fixed-rate loan was provided to Peppertree I LLC.
The property is located on Dorchester Road in northwestern metropolitan Charleston, SC. The neighborhood consists of a mixture of commercial and residential development with retail stores along Dorchester Road. A major link between the Summerville area and Charleston, Dorchester Road also provides access to a U.S. Air Force base and Charleston International Airport.
Boeing Aerospace, the Seattle-based aerospace giant, recently rolled out its first completed aircraft — the widely anticipated 787 Dreamliner — from its North Charleston plant, which is located within 2 miles of the apartment complex. The Boeing Charleston Factory is the East Coast manufacturing, assembly and delivery site for Boeing Commercial Aircraft. The site, which contains 1.2 million square feet and was completed in 2011, is located adjacent to the Charleston Air Force Base/Charleston International Airport.
“The transaction was challenging in that the property was a matured CMBS conduit loan and the special servicer was putting substantial pressure on the borrower to close,” commented Jim Brett, the ValueXpress underwriter on the transaction. “We had to process the loan quickly, and when the special servicer demanded $500,000 in late fees and default interest right before closing, we stepped in and helped with negotiations.”
“The sponsor is a long-time client of ValueXpress and it was imperative that the transaction close without a hitch to maintain this very important relationship,” said Michael D. Sneden, Executive Vice President of ValueXpress. “I am thankful our investment banking partner performed so well on yet-another transaction.”