Multifamily Finance
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Project Spotlights

Each deal presents its own set of challenges. Learn how Capital One Multifamily Finance exceeds expectations to meet the needs of its customers.

Closing 19 Deals at a Time

21 November, 2014

The Challenge

Boston-based Fineberg Companies, an owner of multifamily, retail and office properties, is the type of organization that tends to buy and hold.  For instance, it has owned most of the buildings in a 25-property portfolio of apartments it was looking to refinance since the 1970s. During that time, it had built up a substantial equity stake, making it a desirable sponsor for any lender.  Not surprising it was looking for attractive terms—and a lender capable of simultaneously delivering the 19 separate loans totaling $134.4 million required to refinance the portfolio. 

The sponsor was pursuing a new portfolio loan with a life insurance company when Capital One Multifamily team, led by Senior Vice President Michael Edelman, entered the picture with a better proposal.  Edelman is based out of the firm’s New York office.

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Introducing Clients to New Approaches

29 October, 2014

The Challenge

A large international investment company, active in the United States for 60 years, has an enviable track record of investment in the retail, residential, industrial, office, and hotel sectors.  It was interested in increasing its presence in the Washington, D.C. multifamily market and was looking for a well-performing asset.  It found it in Wheelhouse of Fair Oaks, a 491-unit apartment complex in Fairfax, Virginia.

Constructed in 1987, Wheelhouse of Fair Oaks is a Class-B+ property that had been regularly renovated and upgraded. Community amenities include a clubhouse with free Wi-Fi, swimming pool and sundeck, 24-hour fitness center, tennis court, racquetball court, and private lake. Although the property was in good condition, the investor believed that there was still ample room to move the property up market by making substantial improvements as units turn over. It also planned to upgrade the fitness center, leasing office, and other public spaces.

Given the strength of the local market, this strategy made good sense. Fairfax County is the third wealthiest county in the United States and home to ten Fortune 500 companies.

The investor wanted to improve the property with minimal impact on cash flow.  It was looking for $70 million in the form of a five-year, fixed-rate, interest-only loan and the lowest possible interest rate.  Its deadline: the sooner the better. 

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The Right Structure at the Right Time

30 September, 2014

The Challenge

Raintree Partners invests in the kind of apartments that just about anyone would be happy to rent.  The private commercial real estate investment and development company based in Laguna Niguel, California, focuses on multifamily properties in major West Coast markets, with a special emphasis on such upscale and up-and-coming California locales as Carlsbad, Sherman Oaks, and the Mid-Market area of San Francisco.  It’s not unusual to encounter features like walk-in closets and floor-to-ceiling windows in their units while the properties themselves routinely feature amenities like rooftop lounges and Jacuzzi-style tubs. Since its founding in 2007, the firm has acquired more than 20 communities totaling more than 3,200 units including those under development.

Three of its acquisitions fit the mold: Taiko Village in Burbank, Villa Sofia in Sherman Oaks, and Vista Pardiso in Studio City. All three complexes are Class A properties with modern design, high-end finishes, and stainless steel appliances. Each property offers a full amenity package including dishwasher, refrigerator, gas stove, microwave, wood or carpet flooring, and fireplaces. The properties offer an array of one-, two-, and three-bedroom units, including townhome-style units that range up to 2,059 square feet.

Their back-story, however, is somewhat unusual—but consistent with Raintree’s philosophy of applying the appropriate investment strategy as opportunities arise. The three properties had originally been developed as for-sale condominiums.  In 2011 and 2012, Raintree purchased these assets out of bankruptcy and a portfolio of bank-owned REO. Upon acquisition, Raintree completed the remaining construction and began operating the three properties as for-rent condominium communities.  The initial acquisitions were financed with floating-rate bridge debt.  On stabilization, Raintree looked to Capital One Multifamily Finance for take-out financing options. 

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Different Loans for Different Phases

24 June, 2014

The Challenge

Out on the plains east of Boulder, Colorado, M. Timm Development has been constructing Grandview Meadows in stages since 2000.  The company has proceeded deliberately, building only when the economics were right as it worked to create a first-class property with a full range of attractive amenities.  Currently, the multiphase development has 434 units, with a final phase of 80 units scheduled for completion in November 2014. Given its proximity to both the Denver and Boulder markets, occupancy is extremely high.

But the company knew that its tactical approach to construction could prove a liability when it came to securing financing.   “We recognized that phased assets can pose problems for lenders,” says Matt Easter, vice president of Timm.  “Nonetheless, we approach borrowing with the goal that most investors share: we wanted to obtain long-term financing at the lowest possible rate.”

To meet their expectations, Timm needed an originator with a wide breadth of experience and a willingness to think outside the box.  The company found that partner in Chuck Christensen, senior vice president of originations in the Newport Beach, California office of Capital One Multifamily Finance.

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Robert Nagel
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Capital One Multifamily Finance is distinguished by its ability to structure multifamily mortgages customized to the precise needs of its clients. We are a Fannie Mae DUS® lender, a Freddie Mac lender, and a FHA HUD lender. Plus, we offer balance sheet financing backed by the full strength of Capital One Commercial Banking. You can count on our team of multifamily mortgage makers to deliver apartment financing smoothly, quickly, and with certainty.