CWCapital Announces Financing for 324-Unit Property in Greater Orlando

CWCapital LLC (CW), a subsidiary of CW Financial Services and a full-service, national lender to the multifamily and healthcare real estate industries, announced it has arranged acquisition financing for a 324-unit multifamily development in Altamonte Springs, FL. The loan was originated by Frank Baldasare, Senior Vice President in CW’s Atlanta office, and was referred through ARA Finance, CW’s joint venture with national multihousing brokerage firm Apartment Realty Advisors (ARA). Kevin Judd, Senior Vice President with ARA, referred the transaction.

Built in 1985 and situated on 21 acres adjacent to the Little Wekiva River, Chatham Harbor offers residents two swimming pools, a hot tub, state-of-the-art fitness center, and tennis and volleyball courts. Located 20 minutes north of downtown Orlando and 35 minutes north of Orlando International Airport, the property enjoys excellent accessibility from major transportation corridors, Interstate 4 and State Road 436. The property was 93% occupied at the time of sale.

CW, an approved Seller/Servicer under Freddie Mac’s Multifamily Targeted Affordable Housing Program (TAH Program) arranged for the credit enhancement for the fixed-rate tax exempt bonds through Freddie Mac. The bonds, in the amount of $15,200,000, were used to acquire the property on behalf of Stoneleigh Companies, a national multifamily investment firm.

The transaction was the first bond issue closed in Florida under the Treasury's new Bond Credit Enhancement (BCE) program, and one of just four closed nationwide. The 32-year acquisition/rehabilitation bonds were issued by Orange County Housing Finance Authority under its 2009 allocation cycle.

“The bond structure under the Treasury's BCE program in conjunction with the credit enhancement by Freddie Mac provided the sponsor with a much more favorable interest rate than selling the bonds in the open market,” said Baldasare.

Michael Berman, President and CEO of CWCapital stated, “We are pleased to be among the first lenders to complete a financing transaction under the Treasury’s new BCE program. The program offers a winning combination of supporting affordable housing initiatives while also providing borrowers with highly competitive interest rates. We look forward to the opportunity to close additional BCE loans in 2010. ”

About CWCapital

CWCapital (CW) is a leading, national full-service lender to the multifamily and commercial real estate industries offering Fannie Mae DUS, Freddie Mac and FHA finance programs. A member of the CW Financial Services (CWFS) vertically integrated family of companies, which also includes CWCapital Investments and CWCapital Asset Management, CW has closed over $11 billion in loans since 2005 and currently services approximately $11.5 billion of loans in 48 states. The company generally services all loans that it originates as well as loans for institutional investors.

CWFS employs over 330 employees located in 12 offices nationwide, and through CWCapital Asset Management, is the named special servicer on CMBS transactions backed by $174 billion of multifamily and commercial loans representing approximately 14,000 mortgages. For more information, visit www.cwcapital.com.

Otéra Capital, a Montreal-based mortgage lender, holds a majority interest in CWFS. Otéra Capital offers a wide array of commercial real estate debt services from origination and underwriting to asset management, along with a sophisticated range of products extending from conventional mortgages to structured products. Otéra is active in Canada, the United States and Europe and is a subsidiary of the Caisse de dépôt et placement du Québec, one of the leading institutional fund managers in Canada and the United States. For more information, visit www.oteracapital.com.