PNC Real Estate recently delivered $62 million take-out financing for Arbour Commons, a 394-unit lifestyle apartment community located in the northern Denver suburb of Westminster.
Arbour Commons is located adjacent to the Orchard Town Center Mall in Westminster. In addition to significant amenities in each unit, the complex features a fitness center, a cyber café, a theater, a great room with a fireplace, an indoor demo kitchen with a wine bar and a swimming pool. All buildings are designed to be energy efficient and are LEED for Homes Silver Certified. Not surprisingly, it is more than 90 percent leased in a competitive market.
Founded in 1991, the developer — McWhinney — is an independent full service real estate development, investment and management company with a team of more than 80 highly talented associates. McWhinney operates under a business strategy that calls for developing apartment communities and operating them for the long-term with best-in-class programming that creates a community environment for residents and maximizes their living experience.
The transaction demonstrated PNC Real Estate’s proficiency across the life cycle of debt. PNC Real Estate had first provided a $46 million construction loan to McWhinney in 2013. When it was time to refinance the property’s construction loan, PNC Real Estate was once again at the table, providing Fannie, Freddie, FHA and on book permanent financing options. The company was seeking 10-year and greater fixed rate terms, but PNC Real Estate was able to provide options up to a 30-year term. The developer ultimately selected the 10-year option.
PNC Real Estate’s financing solution took advantage of Fannie Mae’s pre-stabilization program, which allows borrowers to refinance construction loans and add permanent non-recourse financing just prior to full stabilization. For this deal, PNC Real Estate was able to rate lock and close the full stabilized loan proceeds at 70 percent occupancy, with no look back or performance achievements.
“Our relationship with PNC Real Estate continues to grow and remains very strong,” says Joshua Kane, Vice President of Finance for McWhinney. “They continue to meet our needs as our business evolves.”
Date: July 2015
Location: Westminster, Colorado
Financing Amount: $62 million
Financing Type: Permanent loan
Sizing: 394 garden apartment units, 547 open parking spaces, 190 garage parking spaces
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