Landmark Apartment Trust, a publicly registered, non-traded real estate investment trust, obtained 21 separate mortgage loans between July 23 and July 30 from CBRE Capital Markets Inc. which will be assigned to the Federal Home Loan Mortgage Corporation and serviced by GEMSA Loan Services LP.
Each of the 21 loans (15 fixed rate and 6 floating rate) is secured by one of the REIT’s existing multifamily residential properties, and none of the loans are cross-collateralized or cross-defaulted with any others. Each loan has a 7-year term maturing August 1, 2022 and accrues interest at either a fixed rate equal to 4.20 percent or a floating rate equal to 1-month LIBOR plus 2.61 percent. After an initial two-year interest-only period, the principal amortizes on each of the new loans based upon a 30-year amortization schedule.
The floating rate loans have a one-year prepayment lockout period, and Landmark purchased interest rate caps for each one. The aggregate balance is approximately $457.9 million. The company used a portion of the proceeds from the new loans to repay in full the approximately $305.5 million outstanding balance on the existing loans. Landmark expects to use all of the remaining net proceeds to redeem a portion of the company’s outstanding 8.75 percent Series D cumulative non-convertible preferred stock and 9.25 percent Series E cumulative non-convertible preferred stock.
Prior to the refinancings, the interest rates for the existing loans ranged from 2.38 percent to 6.33 percent (with a weighted average interest rate of 4.70 percent) and the maturity dates ranged from August 1, 2015 to July 1, 2023.
The fixed rate loans include Esplanade Apartments in Orlando, Florida; Fountain Oaks Apartments in Jacksonville, Florida; Avery Place Apartments in Tampa, Florida; Ocean Breeze Apartments in Melbourne, Florida; Monaco Gardens Apartments in Charlotte, North Carolina; Landmark at Mallard Creek Apartments in Charlotte, North Carolina; Landmark at Lyncrest Reserve Apartments in Nashville, Tennessee; Landmark at Barton Creek Apartments in Austin, Texas; Landmark at Emerson Park Apartments in Houston, Texas; Landmark at Preston Wood Apartments in Dallas, Texas; Landmark at Spring Creek Apartments in Dallas, Texas; Towne Crossing Apartments in Dallas, Texas; Landmark at Gleneagles Apartments in Dallas, Texas; Park at Northgate Apartments in Houston, Texas; and Landmark at Sutherland Park Apartments in Dallas, Texas.
The floating rate loans include Landmark at Lake Village North Apartments in Dallas, Texas; Landmark at Lake Village East Apartments in Dallas, Texas; Landmark at Lake Village West Apartments in Dallas, Texas; Landmark at Laurel Heights Apartments in Dallas, Texas; Landmark at Wynton Pointe Apartments in Nashville, Tennessee; and Landmark at Glenview Reserve Apartments located in Nashville, Tennessee.
Landmark Apartment Trust is a publicly registered, non-traded real estate investment trust specializes in ownership, acquisition, management and disposition of multifamily apartment communities in geographically diverse, high-growth markets. Landmark Apartment Trust owns and operates more than 26,000 apartment units across the United States in Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, Texas and Virginia.