DALLAS, October 2013 — Dallas, Texas-based Metropolitan Capital Advisors (MCA), a financial intermediary specializing in the exclusive representation of investors, developers and property owners in the commercial real estate capital markets, has arranged a fixed rate CMBS Loan for the historic Montgomery Building located in downtown Oklahoma City, OK.
The Montgomery Apartments is stabilized mixed-use development comprised of seventy (70), Class “A” urban apartment units and 30,000 SF of office/retail space (1st Floor). The Property was originally an office building that underwent a successful repositioning allowing the Sponsor to capitalize on the influx of new urban residents generated from the re-development of downtown. The multifamily portion of the Property is 96% occupied with the retail/office space fully leased. Situated on 0.5 acres, the six (6) story
Property has an ideal tenant mix of working professionals who can enjoy the conveniences of an urban lifestyle including the walkability to employment centers and entertainment, along with nearby accessibility to dog parks and transit.
The Property was originally an office building that was purchased by the Sponsor in 2003. Given the City’s plans to revitalize downtown, the Sponsor believed that converting the Property into a mixeduse development would be the highest and best use. Upon acquisition, the Sponsor immediately redeveloped 56 units on floors 3-6. Shortly after that, the Sponsor leased the retail/office space to several local businesses including a law firm and an employment service center. Due to the strong fundamentals in downtown Oklahoma City, the Sponsor decided to increase the Property’s unit mix. In 2012, the Sponsor elected to develop an additional fourteen (14) units by renovating the second (2nd) floor to residential, and thus, consolidating all the retail/office tenants to the first floor. In addition, the Sponsor expanded the first (1st) floor by 16,000 SF, which is currently leased to an event company that hosts special occasions.
The loan was underwritten at 75% LTV yielding a $11.85mm loan. The interest rate was fixed at 5.29% for the 10 year loan term with two years interest only. The loan had a 30 year amortization after the initial 2 year interest only period. MCA Senior Director, Todd McNeill & Sunny Sajnani were responsible for arranging the CMBS Loan.
Since 1992, Metropolitan Capital Advisors has closed in excess of $8 billion of debt and equity transactions. National Real Estate Investor Magazine recently ranked MCA #18 on its Annual “Best of the Best” Financial Intermediaries list for 2011.