KeyBank Leads $520M Financing Package for Workforce Housing Portfolio
Crossmark Capital negotiated the refinance, which includes a preferred equity investment, for the 19-property portfolio
By Cathy Cunningham January 5, 2024 1:02 pm
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Montium has secured a $520 million financing package for 19 workforce housing properties in Pennsylvania, Delaware and New Jersey, Commercial Observer can first report.
Crossmark Capital’s Marvin Jeremias and Meyer Ovadia arranged a $447.5 million Fannie Mae credit facility for the deal, provided by KeyBank Real Estate Capital, and $72.5 million in preferred equity from Basis Investment Group.
The seven-year, fixed-rate agency loan features interest-only payments and was originated in support of Fannie Mae’s mission-driven business.
KeyBank’s Todd Goulet and Steven Hamm led the deal on behalf of the lender.
Sources familiar with the deal said the loan carried a competitive interest rate of “sub 5.25 percent,” but deal parties declined to comment on the rate.
The portfolio comprises 3,518 units across 19 properties — primarily garden-style buildings — and makes up roughly half of Lakewood, N.J.-based Montium’s total portfolio.
“Crossmark is thrilled to have the opportunity to work with Montium on this workforce housing transaction,” Jeremias said. “Despite the challenging market conditions, we were able to leverage our strong relationships with KeyBank and Basis Investment Group to provide a competitive financing package that allows Montium to pay off the existing floating-rate bridge debt and refinance the portfolio.”
“This is yet another demonstration of the power of our platform, specifically the fact that Basis has the capacity and flexibility to go behind multiple senior lenders including the GSEs,” Kunle Shoyombo, chief investment officer of Basis Investment Group, said in a statement.
Representatives for Montium and KeyBank did not immediately respond to requests for comment.
Cathy Cunningham can be reached at ccunningham@commercialobserver.com.
