New York-based Abacus Capital Group L.L.C. has secured a $200 million credit facility for first mortgage loans to acquire properties on behalf of its discretionary commingled fund, Abacus Multi-Family Partners I L.P. Already, the firm has acquired two apartment communities with the funds.
The Dallas office of Holliday Fenoglio Fowler L.P. secured the $200 million credit facility for Abacus. HFF senior managing director Mona Carlton represented Abacus in arranging a seven-year acquisition facility with Freddie Mac. The structure provides for $150 million of fixed-rate loan proceeds and the remaining $50 million is on a floating-rate basis.
Loan proceeds are being used to acquire multi-family properties throughout the United States over an 18-month period, in conjunction with a discretionary equity fund Abacus recently raised, Ben Friedman, president of Abacus, told
CPN today.
“This facility is an acquisition facility with its money to secure indebtedness as first mortgage loans,” Friedman said. “It is a forward commitment to acquire properties on behalf of the discretionary commingled fund, Abacus Multi-Family Partners I L.P.”
Through this fund, Abacus plans to acquire $400 million of apartment projects.
“We saw the coming turbulence in the credit markets and wanted to get out in front of it,” Friedman said. “We wanted to lock at today’s rates and saw the risks and credit spreads going up. So, we locked in that money before the spreads went through the roof.”
The fund was closed in June. Earlier this month, Abacus acquired two assets with this fund, making its entry into the Phoenix market with a $37 million acquisition of the 312-unit Renaissance at South Mountain, which was renamed Arboretum at South Mountain (pictured). Abacus plans an additional $1 million capital investment into the seven-year-old property.
The complex represents the $110-million fund's second acquisition since its May launch. The Arboretum at South Mountain buy follows that of the 352-unit Eagle Ridge Apartments in Monroeville, Pa., which was acquired for $21.7 million in July.
Multi-Family investment firm Abacus has acquired $2 billion of real estate assets including 21,000 apartment units.