Arbor Realty Trust Lends $82M on 1,000-Unit Multifamily Asset in Memphis
Blue Magma Residential has nabbed $82 million in bridge debt from Arbor Realty Trust to acquire a 1,002-unit residential development in Memphis, Tenn., according to information from Berkadia, which arranged the sale and financing.
The three-year, floating-rate and interest-only loan helped facilitate Tampa-based Blue Magma’s purchase of the sizable Waterview Apartment Homes at 6860 Quince Road in Memphis from its previous owner CapReit.
“Blue Magma dipped their toes in the Memphis multifamily arena a few years ago, but has just made a considerable splash with the acquisition of the 1,002-unit Waterview Apartment Homes,” said Berkadia’s Patrick Jordan, who represented CapReit in the sale out of his form’s Memphis office. “This community offers multi-tiered opportunities for value creation through both interior and exterior improvements. Blue Magma offers a signature style that pairs well with a resilient Memphis market experiencing tremendous growth.”
Berkadia’s Charles Foschini and Christopher Apone, out of its Miami office, arranged the acquisition financing for Blue Magma. Arbor’s Alexander Kaushansky originated the loan, the firm said.
“The borrower has a long history in the market with a proven track record in the successful repositioning of workforce housing communities,” Foschini said. “In a competitive market, [a] lender who has worked with them before provided terms that were class-leading to win the transaction.”
Built in 1985, Waterview sports a mix of one- and two-bedroom units that range in size from around 530 square feet to nearly 1,200 square feet. Monthly rents range from more than $1,000 to around $1,550, according to listing information from Apartments.com and from the property’s website.
While the city of Memphis’ location in the mid-south means it doesn’t offer many waterfront views, the name of the complex is a play on the fact that the community is woven into 22 acres worth of small lakes and ponds that provide such views. The complex also includes a fitness center, indoor and outdoor pools, a sundeck and lounge area and tennis courts.
Mack Burke can be reached at email@example.com.