MBA Commercial NewsLink Wednesday, May 14, 2007

Dealmaker of the Day

MBA (5/14/2007) Murray, Michael
Bulls Capital Partners LLC, Vienna, Va., a Fannie Mae Delegated Underwriting and Servicing (DUS) lender, provided $5.011 million for the refinance of White Bear Woods II, a 75-unit apartment property in White Bear Lake, Minn.
 
The loan was arranged on behalf of LaSalle Income and Growth Fund IV—an institutional fund managed by LaSalle Investment Management. LaSalle Investment Management closed the deal with the fund and refinanced it into the fixed-rate, interest-only Fannie Mae loan 90 days after closing. It is the second transaction for Bulls Capital Partners with LaSalle Investment Management.

White Bear Woods II is a garden-style apartment property with one and two bedroom units. The property is the second phase of a two-phased development in which Growth Fund IV also owns the first phase. It is a "B-plus, high-end" property for the particular market it is in, according to said Herman Bulls, president and CEO of Bulls Capital Partners.

“Phase one of the deal comes up for refinancing next summer. That one currently has bond financing on it,” Bulls said, noting that phase one is valued at nearly $25 million.

“Their strategy was to go in, and reposition a new management. They are putting in about $3500 per unit overall,” Bulls said. “That is the same thing they have done with phase one. It is definitely the purchase of a well-maintained property currently but, at the same time, they will reposition. That’s their value-add strategy.”

Current amenities include a ground floor fitness center, an underground heated parking garage with elevator access and additional bike/storage space. Unit features include wall-to-wall carpeting and walkout patios and decks with oversized sliding doors.

“They go in—get strong very markets, strong projects—and they may go in and add in terms of some capital improvement as well as improved management,” Bulls said.

Dave Hendrickson, senior vice president of Jones Lang LaSalle, originated the loan on behalf of LaSalle Investment Management, represented by Jim Hutchinson, managing director. Douglas Westfall, senior vice president of loan production, represented Bulls Capital Partners in the transaction.