Capital One Multifamily Finance announced today that it has originated a $6.4 million fixed loan through a CMBS partner for the acquisition of Colony House Apartments, a 139-unit garden-style apartment community in Fort Walton Beach, Florida.  Senior Vice President of Originations Chad Thomas Hagwood, who leads Capital One Multifamily’s Southeast offices, originated the transaction.  Jimmy Adams, of the Birmingham office of Multi Housing Advisors (MHA) brokered the sale of the transaction.

The borrower, Engel Realty, is one of Alabama’s oldest and largest real estate firms.  Founded in 1905, it develops, owns, and manages office, retail, industrial, and multifamily investment properties.  The company is a repeat customer of Capital One.   “We’re always grateful when an established client gives us another opportunity to assist them with their financing,” Hagwood said.  “We really become invested in their success.”

Located in Fort Walton Beach, Colony House Apartments was developed in 1966 and expanded in 1979. The community has been maintained in excellent condition, and occupancy levels have averaged 99 percent, with low tenant turnover.  The complex is located in the desirable Colony Estates neighborhood, a mile from major thoroughfares that provide easy access to area employers as well as the beaches of Florida’s Emerald Coast.  The presence of two major Air Force bases bordering Fort Walton Beach—Elgin Air Force Base and Hurlbert Field—helps stabilize the economy.

The fixed-rate loan has a ten-year term, 9.5 years of yield maintenance, and three 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.