Continental Properties secured $480 million from New York Life Investment Management to refinance 10 apartment properties with more than 2,700 units across seven states, Commercial Observer reported Monday, November 2. The debt replaces construction financing rather than funding a newly announced acquisition.
The report identifies Walker & Dunlop’s Jim Cope as the broker who arranged the transaction. The portfolio’s properties are in Florida, Georgia, Illinois, Indiana, Iowa, Michigan and Tennessee. Continental did not provide their names or street addresses in the report.
The communities will be folded into Continental Properties Development Fund II, which encompasses 23 communities and more than 5,700 apartments, according to Commercial Observer. The 10 properties being refinanced are therefore part of a broader fund portfolio, not the entire 23-community group.
Dan Sell of Continental Properties said in a statement quoted by the publication that replacing construction financing was expected to generate proceeds for investors and strengthen the company’s balance sheet. Those comments describe the borrower’s expectations; the report did not specify the amount of investor distributions or guarantee future returns.
The disclosed $480 million is the financing amount. It does not establish a purchase price or current valuation for the 10 properties. The report did not disclose an interest rate, maturity date, loan-to-value ratio or property-by-property allocation of the debt.
The refinancing moves the communities from their construction-debt stage into a new capital arrangement while Continental continues operating the apartments. It is distinct from the company’s October announcement of Development Fund IV, a separate $203 million fund for future suburban apartment developments. That earlier fundraise is not the source or size of Monday’s reported loan.
JBizNews Desk | New York
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