Capital One Multifamily Finance announced today that it has provided a $7.7 million Fannie Mae fixed loan to refinance two recently completed student apartments in Tuscaloosa, Alabama, home of the University of Alabama.  The loan will be used to retire construction debt incurred to build the 33-unit Central Park Apartments and Gramercy Park Apartments, with six units.  Chad Thomas Hagwood, Senior Vice President in Capital One Multifamily’s Birmingham office, originated the transaction.  This is the second loan the borrowers have completed with Capital One Multifamily.

The borrowers have successfully owned and operated numerous student properties in the Tuscaloosa market for more than 15 years.  The properties will be managed by College Station Properties.

The Central Park and Gramercy Park Apartments are located across from each other two-tenths of a mile from the University of Alabama. They are well within Inside the Box, the coveted submarket closest to campus with typical occupancy levels above 97 percent, and are a short walk from The Strip, a commercial area with restaurants and shopping that caters to students. The two properties, which are fully occupied, consist of two-, three- and four-bedroom units.

The fixed-rate loan has a ten-year term, 9.5 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.