Capital One Multifamily Finance announced today that it has provided a $19.5 million Fannie Mae fixed loan for the acquisition of City Point, a 396-unit garden-style apartment community in Austin, Texas. Adam Bieber, Vice President in Capital One Multifamily’s Bethesda, Maryland, office, originated the transaction.

The borrower, Firmus Equity Partners, concentrates on value-add multifamily properties primarily in the Midwest and Texas. The City Point acquisition is also its first transaction with Capital One Multifamily, as well as its first Fannie Mae loan.  “We decided to explore Fannie Mae financing because the structure of the loan—and particularly the availability of interest-only payments—meshes well with our strategy as a value-added operator,” said Cary Krier, the founder of Firmus.  “Working with Capital One allowed us to exceed our expectations.”

Capital One was able to deliver the financing for the project on a tight deadline.  “This transaction highlights the advantage for clients of our longstanding relationship with Fannie Mae,” Bieber said.  “It also reflects the expertise we bring to bear on all our transactions, and our commitment to close as efficiently and quickly as possible.”

Constructed in 1983, City Point is conveniently located in north-central Austin near the intersection of I-35 and Highway 290.  Approximately 20 percent of the units have been recently upgraded, and the exteriors of all units have been sheathed in fiber-cement siding.  The borrowers plan to continue interior renovations as units turn over.  he fixed-rate loan has a seven-year term, six and a half years of yield maintenance, and two years of interest-only payments, with a 30-year amortization thereafter payable on an actual/360 basis.

Capital One Bank’s Commercial Real Estate Group provides financing in markets nationwide, offering a comprehensive array of solutions for property owners and developers, including balance sheet and agency lending, financing, underwriting, and treasury management.