Greystone Provides $108M Freddie Refi for Nine-Property Apartment Portfolio


Greystone has provided $108 million in Freddie Mac financing to Eighteen Capital Group for a nine-property apartment portfolio, Commercial Observer has learned. 

The cash-out refinance is a 10-year loan with interest-only payments for the first two years, and has a leverage point of roughly 70 percent. Cushman & Wakefield’s Baxter Fain, Christina Grimme and Sarah Dinning — based out of the brokerage’s Denver office —negotiated the debt. 

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The portfolio comprises 1,969 units in Arkansas, Texas, South Carolina, Indiana and Missouri.

“This is the single largest transaction in our company’s history. Closing a deal of this magnitude in a challenged 2020 debt market speaks volumes about the efforts of our team,” Jeffrey Plummer, a managing director of Eighteen Capital Group, said. “We’re thankful for the opportunity to have worked with great partners on this transaction and for being able to deliver an important and successful debt execution for our owners.”

“This was a critical portfolio to refinance for the client in this environment,” Fain added. “The significant cash out, in addition to locking in a historically low interest rate, positions the sponsors very well for the next 10 years in addition to providing liquidity to look at opportunities in the coming months and in 2021.  The client’s expertise in turning around broken and heavily distressed assets was evidenced in this refinance and will help them in buying new deals as they come available.” 

Kansas-based Eighteen Capital Group is a multifamily investor with a focus on value-add opportunities. The firm owns 6,865 units in 20 markets today.

Officials at Greystone weren’t immediately available for comment.