$19.8 Million in Debt and Equity for Multifamily Asset Acquisition Arranged by IPA Capital Markets
Jul 07, 2016

PASCO, Wash., July 7, 2016 – Institutional Property Advisors Capital Markets (IPA Capital Markets), a leading provider of debt and equity placements and advisory solutions for major investors, has arranged $19.8 million in debt and joint venture (JV) equity for the acquisition of Navigator Villas, 176-unit multifamily property in Pasco, Washington.

“The borrower, a client we have worked with since 2007, tasked IPA Capital Markets with sourcing a joint venture equity partner that had a similar investment strategy as the client, and competitive financing that would provide the highest cash on cash return,” says Jake Roberts, first vice president capital markets. “We met our client’s goals by identifying a high-net-worth family whose investment strategy aligned well with our client’s, making an ideal JV equity partner. We were also able to obtain full leverage financing with five years interest only, which allowed the partners to maximize their cash-on-cash returns at over 10 percent.”

“This transaction is significant because it highlights a growing number of strong and seasoned investors moving more into secondary and tertiary markets to achieve better cash yields,” says Anita Paryani, vice president capital markets.

The transaction required $5 million in joint venture equity and $14.8 million in financing. The loan was structured with a fixed 4.36 percent interest rate with five years interest only, 12-years term at 80 percent loan-to-value.