Meridian Capital Group has arranged $52.5 million in financing for Riverview Landing at Valley Forge—a luxury multifamily property in Eagleville, Penn.—on behalf of Liss Property Group, Commercial Observer has learned.
CCRE provided the debt, sources familiar with the transaction told CO, which combined a $44 million senior CMBS loan with a $8.5 million mezzanine loan.
Officials at Meridian declined to confirm the lender’s identity or the individual loan amounts, but said the 10-year financing package has a blended rate of 5.68 percent and full-term interest-only payments. Additionally, an 82.5 percent loan-to-value was achieved by combining the senior CMBS loan with the mezzanine debt.
Riverview Landing at Valley Forge is located at 1776 Patriots Lane in the Valley Forge suburb of Philadelphia. The property consists of 310 units across six buildings. Property amenities include a swimming pool, grilling stations, a fitness center and a 5,000-square-foot clubhouse with a kitchen, a fireplace and a billiard room.
Meridian’s Russ Drebin and Steven Halpert negotiated the deal.
“The proceeds of this financing package were used to retire a bridge loan that was used to renovate approximately 30 percent of the units,” Halpert said. “The success of this capital improvement initiative allowed Meridian to secure favorable permanent financing with mezzanine debt that includes funds allocated for the renovation of the remaining units.”
As previously reported by CO, Liss Property Group—a Pennsylvania-based, family-owned real estate investment firm—purchased the apartment complex for $55 million from Texas-based Milestone Apartments REIT in October 2015. Greystone provided a $46 million loan for the acquisition and introduced Liss Property to its joint venture equity partner in the transaction, Azure Investments.
“We identified the project and came in very aggressive because we knew we would be an underdog in purchasing it,” William Liss, the founder and chief executive officer of Liss Property, told CO at the time of the acquisition. “We haven’t owned a property of this size and the purchase price was about double what we have bought in the past. We recognized the tremendous upside.”
A spokeswoman for CCRE did not immediately return a request for comment.