Arbor Realty Trust Supplies $25M Acquisition Loan for Buffalo-Area Apartments

Chopp Holdings has nabbed $24.7 million of acquisition financing for the purchase of a multifamily portfolio in suburban Buffalo, N.Y., Commercial Observer has learned.

Arbor Realty Trust provided the loan for Chopp’s acquisition of the U-Crest Apartments and Belvedere Manor properties at 1175 George Urban Boulevard in Cheektowaga, N.Y. Chopp acquired both assets — which total 340 units — for $31.9 million from Pillar Real Estate Investors.

Cushman & Wakefield negotiated the transaction with an equity, debt and structured finance team of Brian Anderson and Eddie Miro. C&W’s Niko Nicolaou, Ryan Dowd, Peter Welch, JP Hohl and Alexandria Russo Ebers brokered the sale in collaboration with Pyramid Brokerage Company’s Jonathan Weinstein and Robert Stewart. 

“Financing the U-Crest and Belvedere portfolio was an exciting opportunity for our debt team to support a sponsor executing on scale and value creation in one of Buffalo’s strongest suburban markets,” Anderson said in a statement. “With 340 units across two well-located communities and in-place rents that are currently below market, this deal shows how well-positioned assets in Cheektowaga continue to attract competitive capital.”

Located nine miles east of Downtown Buffalo, the 240-unit U-Crest Apartments and 100-unit Belvedere Manor comprise 124 buildings in garden-style complexes across 19 acres. Both properties have occupancy rates of around 96 percent and benefit from a Cheektowaga submarket that has seen rent growth increase 4 percent annually in recent years,, according to C&W.

Officials at Arbor Realty Trust and Chopp Holdings did not immediately return requests for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.