(NAS), one of the Country’s leading commercial real estate companies, today announced the successful refinancing of multifamily property in Mesquite, TX. Investors in Alexis at Town East, a 224-unit, 222,916 square-foot, tenant-in-common (TIC), multifamily property, located approximately 20 miles east of downtown Dallas, in Mesquite, Texas recently closed on refinancing that enable the tenant-in-common co-ownership structure to remain intact.
NAS successfully managed a complex process involving the sale and purchase of five TIC co-ownership positions and four exchanges culminating in the refinancing of 14 co-ownership interests in the property. The co-owner group secured a 10-year, commercial mortgage-backed securities note from Jefferies LoanCore located in Greenwich, CT.
Procurement of a loan for a tenant-in-common property, without the Lender’s requirement of a restructuring of co-owners into one entity, is a unique circumstance in today’s marketplace. Many capital sources are reluctant to refinance tenant-in-common properties that were routinely part of highly leveraged acquisitions in the early 2000’s.
Key to the favorable refinancing outcome for co-owners was the enhancement of the property’s value achieved with aggressive NOI driving measures such as proactive leasing, diligent control of operating expenses without compromising a high quality living experience for residents, and long range strategic planning for capital expenses. Since NAS assumed asset management of the property in 2009, the property has maintained an average occupancy rate of over 94% and distributions to co-owners averaged 6% each year. The tenant-in-common co-owner group has retained NAS as the property’s Asset Manager.
“Our relentless persistence in pursuing the best possible outcome for our clients and our expertise in resourcing key service providers have enabled us to deliver a successful refinancing of multifamily property. It allows the original TIC ownership structure to remain intact, with all of its inherent tax advantages,” commented Karen E. Kennedy, President and Founder of National Asset Services. “We’ll continue to steadfastly focus our expertise on maximizing the Property’s return on investment for our clients at Alexis at Town East.”
“Karen E. Kennedy and her team at NAS have been dedicated and tireless in working toward the success of the properties in which we have invested,” commented Joanne Jones, Alexis at Town East Investor. “Regarding the complex refinancing of the Town East apartment complex, NAS has gone above and beyond what anyone could expect to make it happen. Karen has always been knowledgeable, hardworking and most importantly, accessible. When we have a concern or question, she is always available to address it. When your primary source of income is NAS property, this is extremely reassuring.”
Thomas Wood, President of Thomas D. Wood, Miami, Florida, served as mortgage broker for the transaction. Serving as counsel to the TIC group was Connolly & Malstrom, Salem, Oregon.
Completed in 2003, The Alexis at Town East is a Class-A property consisting of 11 apartment buildings, situated on 15 acres. The complex features superior amenities including a resort-style pool, business resource center with conference room, a fully equipped 24-hour access fitness center, a picnic area with gas grills, and two on-site playground areas.