Alliant Credit Union closes $68 million in multifamily transactions
Transactions completed for three borrowers in Columbia, S.C., Richmond, Vir., and Portland, Ore
CHICAGO, IL (June 21, 2021) — Alliant Credit Union announced that it has closed over $68 million in financing for three multifamily properties in the Southeast and West Coast. The transactions encompassed a $32 million acquisition loan in Columbia, S.C.; a $23.4 million refinancing in Richmond, Vir.; and a $13 million refinancing in Portland, Ore.
“The multifamily market continues to be active, particularly in markets that are growing and offer attractive live-work-play lifestyles,” said Charles Krawitz, Vice President, Commercial Lending, Alliant Credit Union. “We have continued to see demand from borrowers seeking flexible financing to achieve the business plans for their investments.”
$32 million acquisition loan for Columbia, S.C., apartment complex
In Columbia, Alliant funded a $32 million loan toward the acquisition of a newly constructed, Class A, 285-unit apartment complex. The borrower was a private owner and operator of multifamily properties expanding into the growing Columbia market, a top-five U.S. city for millennials and top city for starting new businesses. The loan structure includes interest-only payments, minimal reserves and flexible exit options. Ira Zlotowitz, President and Founder, and Michael Wyne, Senior Vice President, of Eastern Union referred the transaction to Alliant Credit Union.
Completed in 2019, the property features a resort-style swimming pool, large courtyard, clubhouse, fitness center and media room, with Class A finishes, hardwood flooring and energy-efficient appliances.
“Alliant committed to closing the loan in a shortened time frame to enable the borrower to win the deal,” said Yonah Sturmwind, Commercial Loan Specialist Originator, Alliant Credit Union. “We were thrilled to provide financing for this premier investment group in a growing Southeastern city.”
$23.4 million refinancing of Richmond, Vir., mixed-use property
In Richmond, Alliant funded a $23.5 million loan to refinance a recently constructed, Class A property comprising 128 apartments and 8,000 square feet of retail space. The borrower was a private real estate investor, developer, operator and advisor with operations in the Southeast. The tailored loan structure featured a seven-year term with an interest-only period, a step-down in interest rate, an earn-out provision and flexible exit options. Charles DuBose, Jr., Managing Director, and Harmon Handorf, Director of Underwriting, of Phillips Realty Capital referred the transaction to Alliant.
The property was completed and stabilized in 2020 and features a clubhouse, fitness center, sky-lounge, pool and Class A unit finishes. It is located in the growing Manchester submarket across the river from downtown Richmond, a lively district considered to be one of the most desirable locations in the city.
“Alliant is excited to work with such accomplished real estate professionals at Thalhimer Realty Partners on this loan and we thank the Phillips Realty Capital Team for their referral and execution of the closing,” said Paul Letourneau, Manager, Commercial Loan Originations, Alliant. “We are proud to be part of the revitalization and growth of the Manchester community in Richmond by financing a project that will add high-quality, Class A units to the area.”
$13 million permanent loan for Portland, Ore., mixed-use building
In Portland, Alliant provided a $13 million permanent loan with $9.5 million in initial funding to refinance a 129,398-square-foot, four-story, Class B mixed-use building with on-site parking. The financing included a cash-out of equity and an earn-out provision structured as a reimbursement based on the borrower’s capital improvement budget. The loan structure ensures that the loan-to-value ratio for the property will remain below 65%. Casey Davidson, Managing Director, JLL Capital Markets, referred the transaction to Alliant.
Developed in the late 1990s, the property comprises 85 apartments that are 94% occupied and 26,402 square feet of fully occupied ground-level retail space anchored by H-Mart Asian Grocery. The refinancing will enable the borrower, a private investment partnership, to replace an insurance company loan with a large prepayment penalty and to fund energy-saving improvements to the property.
“The borrower needed a creative financing approach to support their business plan for the property,” said Peter Margolin, who originated the loan for Alliant. “Over time, Alliant’s tailored loan solution will help the borrower improve the return on their property investment.”
About Alliant Credit Union (IL)
Alliant Credit Union is a not-for-profit financial cooperative with more than 850,000 members and nearly $19 billion in assets. Alliant was named one of CNBC's Top Credit Unions for 2023 and one of Money.com's Best Banks for America. Headquartered in Chicago and founded in 1935, Alliant is the largest credit union in Illinois and one of the largest credit unions in the United States. As an all-digital credit union, Alliant's mission is to provide members with a tech-forward banking experience coupled with consistent, superior financial value while simplifying and enabling how people save, borrow and pay.
