Pondsview Apartments

Brady Capital Advisors, LLC (BCA) announced today that it has arranged and facilitated $31 million in acquisition financing for the Pondsview Apartments, a 174-unit, garden-style, multifamily property located on 4.5 acres at 13-27 Kenmar Drive in Billerica, MA for a closing that took place on February 15, 2024.

BCA arranged financing on behalf of the owners, Fren Management, who are an investment, development, and management firm with approximately 1,500 apartment units under ownership and management across New England. BCA was able to originate a fixed-rate acquisition loan of $27,625,000, representing 66% Loan-to-Purchase, plus construction financing in the amount of $3,500,000 to facilitate the value-add reposition and stabilization of the asset.

“This transaction truly represented a story we’ve all become too familiar with – the rollercoaster that is today’s interest rate environment. The deal went under contract initially in May of 2023 when the 5 Year UST was 3.20%; fell out of contract in July after rates ran over 100 basis points; went back under with a price adjustment in August, and fell out again in October when rates hit their peak. Seemingly against all odds, a deal was put back together and cooler heads prevailed. With that said, the steadiest hand of all throughout the transaction was our lending partner. The interest reserve might have fluctuated throughout the process, but their unwavering commitment to getting this deal closed did not,” said Patrick Brady, President of Brady Capital Advisors. “We were able to deliver our client almost 70% loan-to-cost with competitive pricing, and we never had to think about execution risk. On a transaction like this with so many ups and downs, if nothing else, it was certainly one less thing to worry about.”

The lender, a national bank, offered a 5 year fixed rate, with 3 years of interest only followed by 27 year amortization, and a flexible prepayment structure.