HONOLULU—Grandbridge Real Estate Capital recently originated and closed a $3,150,000 first mortgage secured by Hale Koe Apartments in Honolulu, Hawaii. The 40-unit multifamily property, built in 1971 and renovated in 1992, is located on .52 acres and includes a mix of one-bedroom/one-bath and two-bedroom/one-bath units.
Grandbridge Senior Vice President Chris Dyson and Vice President Todd Elkins arranged the refinancing and funded the loan through Fannie Mae’s Delegated Underwriting and Servicing (DUS®) loan product. The transaction closed with an interest rate in the mid-five percent range and has a 10-year term with a 30-year amortization. The borrower, a third-generation developer in the area, took a portion of proceeds as an equity distribution and used the remainder to refinance the existing debt on the property.
"Thanks to our friends at Oahu-based Pacific Rim Bank, we were able to obtain critical intelligence regarding the dynamics of Hawaii’s multifamily market, giving us a better understanding of the history, culture and character of the typical multifamily owner/operator on the islands — all discoveries were positive from a lender's perspective. We hope that these are the first of many transactions we originate and close in Hawaii, as the state’s overall housing stock is limited and the fundamentals of its apartment operations remain strong,” explained Elkins.
Grandbridge also originated and closed a $1,400,000 first mortgage secured by Hale Hui Apartments in Pearl City, Hawaii, for the same borrower. It was also funded through Fannie Mae’s Delegated Underwriting and Servicing (DUS®) loan product. The 16-unit, three-story multifamily property, built in 1988, is located on .26 acres and includes apartments ranging in size from 335 square feet to 736 square feet. The transaction closed with an interest rate in the mid-five percent range and has a 10-year term with a 30-year amortization.
Charlotte, N.C.-based Grandbridge has a broad investor base that includes insurance companies, pension fund advisors, commercial banks and capital markets investors, as well as a proprietary lending platform. The company is a Fannie Mae Delegated Underwriting and Servicing (DUS®) lender and a Freddie Mac Program Plus® Seller/Servicer and Targeted Affordable Housing lender. Grandbridge is also a Multifamily Accelerated Processor (MAP) and LEAN health care approved active participant in products insured by the Federal Housing Administration.
The company arranges permanent commercial and multifamily real estate loans; services loan portfolios; and provides asset and portfolio management, as well as real estate brokerage services. Grandbridge has a servicing portfolio of approximately $24.75 billion representing nearly 100 capital providers.
At September 30, BB&T Corporation had $162 billion in assets and was the nation’s 10th largest financial holding company. Founded in 1872, it operates more than 1,800 financial centers in 11 states and Washington, D.C. More information about the company is available at BBT.com.