BETHESDA, MD – Capital One announced today that it has provided a total of $61.6 million in Fannie Mae fixed rate loans to refinance two apartment properties for EBSCO Income Properties. These transactions mark EBSCO Income Properties ninth and tenth with Capital One. Senior Vice President Chad Thomas Hagwood, who leads Capital One Multifamily Finance’s Southeast region from its Birmingham office, originated the loans and Brandon Pate managed the transactions
A $25.6 million Fannie Mae fixed-rate loan was provided to refinance Lincoln at Wolfchase, a 408-unit apartment community in Cordova, Tennessee, a community 15 miles east of Memphis. The 12-year fixed-rate loan has three years of interest-only payments followed by amortization on a 30-year schedule. The loan was used to retire higher-interest debt and return equity to the borrower.
Laurel Springs Apartments, a 504-unit apartment community in High Point, the center of North Carolina’s furniture industry, received a $36 million Fannie Mae fixed-rate loan. The 12-year fixed-rate loan has four years of interest-only payments followed by amortization on a 30-year schedule. The loan was also used to retire higher-interest debt and return proceeds to the borrower. It was financed under Fannie Mae’s Green Building Certification program, which provides a substantially lower all-in interest rate for properties with a Fannie Mae-recognized energy certification.
“EBSCO has done a fantastic job with these properties since they were acquired by the company a few years ago. These transactions underscore the tremendous advantage for borrowers to develop a long-term relationship with the right lender,” Hagwood said. “Over the last decade, EBSCO Income Properties has amassed a high-quality portfolio of properties in the Southeast. Our team's in-depth knowledge of their objectives allowed us to successfully close these deals and, in one, help EBSCO obtain financing through the Fannie Mae Green Building Certification program.”
EBSCO Income Properties is an owner, investor, and asset manager/operator of market-rate conventional multifamily housing.
“We’ve learned that we can count on Chad’s team at Capital One for timely, certain execution. Their performance was second to none,” said Leslie Yeilding, General Manager and Vice President at EBSCO Income Properties. “They are always responsive to our needs.”
Built in 1998, Lincoln at Wolfchase features a pool, clubhouse, grilling area, and covered parking and garages. Each unit has a full-sized washer/dryer and patio, balcony, or sunroom. After acquiring the property in 2015, EBSCO embarked on a campaign to increase its NOI. It completed a capital improvement plan focused on exterior renovations and enhanced the creditworthiness of its tenant population. For the last year, occupancy rate at Lincoln at Wolfchase has averaged more than 95 percent.
Constructed between 2001 and 2005, Laurel Springs Apartments features a clubhouse with fitness center, two swimming pools, and garages for tenants. All units have fully equipped kitchens, pantries, oversized closets and full size washer/dryer connections. After acquiring Laurel Springs as a bank real estate owned property in 2015, EBSCO embarked on a campaign to stabilize the property. At closing, occupancy exceeded 96 percent.
Capital One Bank’s Commercial Real Estate Group offers a comprehensive array of financing solutions for property owners and developers nationwide, including balance sheet and agency lending. Additional information can be found at www.capitalonemultifamily.com.
About Chad Thomas Hagwood: Chad Thomas Hagwood, Senior Vice President for Originations, manages the Southeastern region for Capital One Multifamily Finance and is based in the company’s Birmingham office. Hagwood is actively involved in the origination of multifamily, manufactured home communities and commercial real estate debt financing throughout the nation. Over the course of his career, Hagwood has closed in excess of $7 billion in commercial real estate transactions.
About Capital One: Capital One Financial Corporation is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $241.2 billion in deposits and $348.5 billion in total assets as of March 31, 2017. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.