Waterton Acquires $109M of Multifamily Debt

Waterton Acquires $109M of Multifamily Debt
CHICAGO, IL - Waterton Residential recently acquired $109.5 million of debt secured by four prime multifamily properties located in North Carolina and California. So far this year, Waterton has acquired $179.2 million in distressed debt secured by multifamily assets and expects to acquire another $150 million in debt and/or multifamily properties by the end of 2010.

The recent debt acquisitions include mortgages secured by the Exchange at Brier Creek, a 274-unit property in Raleigh, North Carolina; Skyline Terrace Apartments, a 139-unit property in Burlingame, California; Waterstone Corona Pointe Apartments, a 628-unit property in Corona, California; and Copper Canyon Apartments, a 296-unit property in Riverside, California.

"Waterton has been one of the leading buyers of distressed debt secured by multifamily properties in 2010 because of our discretionary capital and ability to close complex transactions in a timely manner," said Max Peek, Waterton Residential's Vice President of Acquisitions. Mark Stern, Senior Vice President of Acquisitions, adds, "Waterton's multifamily debt portfolio has grown dramatically over the past 18 months with mortgage interests secured by over 34,382 units with aggregate loan balances exceeding $2.29 billion."

Exchange at Brier Creek: Originally developed by Flaherty and Collins Development, Waterton successfully negotiated a workout with the existing borrower transferring the title in July to a new Waterton entity. CW Capital assisted Waterton in placing a new Freddie Mac Capital Markets Execution loan at closing.

The Exchange at Brier Creek is a Class A, mid-rise multifamily community located in the north Raleigh submarket. Completed in 2008, the property is a new addition to the developing Brier Creek neighborhood and features a diverse unit mix of studio, one- and two-bedroom units all with nine-foot ceilings ranging in size from 667 to 1,525 square feet.

Located less than a mile from Interstate 540 and the Raleigh-Durham International Airport, and proximate to the intersection of Globe Road/Brier Creek Parkway and Aviation Parkway, the property provides easy admittance to Interstate 540 for efficient access to all of the major roadways connecting both Raleigh and Durham via Interstate 40, also called the Dan K. Moore Freeway.

Skyline Terrace Apartments, Waterstone Corona Pointe and Copper Canyon: Waterton acquired the senior mortgage on Skyline Terrace and the junior participating mortgages on Waterstone Corona Pointe and Copper Canyon Apartments from a New York based Hedge Fund.

While all three properties are Class B multifamily communities, Skyline Terrace is a mid-rise located in the San Francisco Bay area; Waterstone Corona Pointe Apartments was completed in three phases in 1987 and is located in an attractive residential neighborhood in the Corona, CA submarket; and Copper Canyon Apartments is located in the Riverside, CA market. All three mortgages are current and performing and will be held as yield to maturity investments.

All four properties were acquired as part of Waterton Residential Property Fund X, a $222 million discretionary multifamily investment fund.

Chicago-based Waterton Residential, one of the leading multifamily companies in the nation, is focused on the acquisition and management of apartment communities in multiple markets to which it can add value through repositioning and renovation. Since its inception in 1998, the Waterton Residential team has remained committed to outstanding customer service by providing a community our residents are proud to call home. With over 15,000 apartment homes in 36 communities in 12 states the Waterton Residential brand signifies exceptional living experiences, a sense of community, and home. Waterton employs approximately 450 associates who are committed to achieving the Waterton Residential vision to be the leader in the multifamily industry.
Source: Waterton Residential

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